Despite all the information bubble, today most busy professionals in India still end up getting terrible investment advice. This crude and undesirable reality prepared Satyen Kothari for yet another entrepreneurship inning and eventually leading to the birth of Cube Wealth in 2016. Meanwhile, Satyen’s earlier innings boasts impressive credentials as a co-founder of Citrus Payment, which is today one of India’s most successful B2B Fintech startup.
Cube Wealth offers wealth creation services with the help of top notch financial advisors not only from India but also from across the world. To avail these services, you just have to download the Cube Wealth app from Google Play Store and you’re in for a truly expertise yet simplified investment advice. The company aggressively targets the upper middle class segment with annual income of Rs 10 Lakh or more.
Cube Wealth’s unwavering focus on offering expertise financial advice has helped in gaining significant traction in a very short span of time. Today the company boasts clients across 26 Indian cities and 5 foreign countries. Its customers hail from highly successful companies like Flipkart, Unacademy, Google, Amazon, Uber, Deloitte, Ernst and Young and WeWork.
Cube Wealth’s series A funding round that led to $2 Mn (Rs 14 crore) funding in October last year is a strong validation of its meteoric growth.
In an exclusive interview with Techpluto, Satyen Kothari talks everything that is important under the sun with regards to his company Cube Wealth and financial investment industry.
Q) Currently, what are some of the top financial investment products and solutions available under your Cube Wealth app?
Satyen kothari: We have curated investments for both the long term and short term. We narrow things down based on your risk profile, investment horizon and financial goals. Our aim is to ensure you are not mis-sold products that are not right for you.
A good, well-balanced portfolio follows a very logical path of planning for emergencies to short term expenses to long term planning. Our options are tailored for each of these stages.
If you’re at a stage where you need some safe and short term investments Cube offers everything from short term liquid funds, debt funds to Gold based investments.
Meanwhile, our short term P2P lending and receivables financing options can help you get higher returns by allocating a part of your portfolio to slightly aggressive yet secure investment options.
This can be complemented by Cube Wealth’s Equity Advisory which covers both SIPs and Lump sum mutual funds investments for those with a 5+ year horizon. This becomes a solid option for creating wealth for your future. A healthy best egg that can be used for financial freedom, early retirement or even a world tour! We also offer Portfolio Management Services which are ideal for retirement and long term wealth creation.
Options like ELSS investments for tax saving and international mutual fund investments are also available. One of our newest offerings is US Equity investments which let you invest in companies like Google, Facebook and Apple! There are options for all kinds of investment needs and one can browse through them easily using the Cube Wealth App.
3) Do you think that today most Indians, especially salaried class professionals, have really started looking beyond conventional investment options like LIC and FDs?
Satyen kothari: Our most popular products are equity, alternative investments, and MFs under the guidance of a top tier advisor.
A lot of Indians across the board have started looking at Mutual Fund Investments as an option. However, we have a long way to go before we can say “most Indians” have adopted them – we are after all nearly 18% of the world’s population. India has one of the lowest global rates of retail MF penetration.
Lack of education and hesitation have left many still toying with traditional options and settling for Fixed Deposits and LIC policies. This is, of course, changing rapidly thanks to apps like Cube Wealth which are making it increasingly easier and hassle-free to invest in mutual funds.
4) Following the series A funding in October last year, when is Cube Wealth expected to raise series B round?
Satyen kothari: We’re actually growing at a solid rate and have successfully expanded our business to over 5 cities and continue to grow sales in its top cities like Mumbai, Bengaluru, Hyderabad, Chennai, and Pune. We are expanding to Europe, Japan and targeting non-resident Indians and HNIs. I can’t confidently say that we’ll be profitable before we need to raise a Series B.
5) There is currently a lot of talk about an economic slowdown and liquidity crunch in the market. Do you think that these factors will have an impact on Cube Wealth’s growth if they continue to persist in the long run?
Satyen kothari: The question of what will happen if the economy slows down and the fear of a liquidity crunch in the market is an old one. While these factors often drive investor behaviour the market has historically always corrected itself. Warren Buffett once famously said, “Buy when there’s blood in the street.” While we at Cube view wealth through a happier and more empowering lens, I don’t think we’ll see a slowdown that will hurt our growth in the near future.
In addition, our short term fixed return products that give 10+ % and our Gold asset option are great hedges while waiting for the markets to get back in your comfort zone.
6) How much did your previous stint as the founder of Citrus Pay, which is today a highly successful Fintech startup, has helped in running and managing operations in Club Wealth?
Satyen kothari: Cube Wealth is my 5th venture. What I’ve learnt from Citrus Pay and all my previous businesses has definitely helped in more than just managing operations at Cube. It has taught me about the value of belief, ethics, and the art of choosing the right people for the right job.
7) Any major predictions about the financial investment industry with regards to foreseeable challenges and growth opportunities?
Satyen kothari: There is a lot of opportunity to match-make quality money with quality investment experts even today. The greed and fear cycle needs to be overcome by focusing on some core principles of quality and discipline – these will ensure each investor will continue to progress on the path of becoming financially wealthy.
8) With Cube Wealth already pursuing an aggressive expansion strategy, where do you see the company 3-5 years from now in terms of overall growth?
Satyen kothari: Cube’s long term mission is to connect global capital supply and demand while focusing on integrity, transparency and alignment with the best interests of all our customers. This is a long term goal and the next 3-5 years will just be the start.
9) Taking a cue from your highly successful entrepreneurial journey, what are some of the valuable advice that you’d like to offer to all the budding entrepreneurs?
Satyen kothari: Do something you’re passionate about, it’s going to be a lot of work and you’ll need passion along the way.
Be patient and think long term, you need to work hard to grow your business but the business needs you at your best to grow as well.
Hire the right team – your team is going to be the driving force of your business; make sure you hire individuals who are great at what they do and fun to work with.
Take time out for yourself – whether it is a short road trip, a pottery class or a few rounds in the boxing ring, take some time to do whatever helps you unwind and recoup.
10) Who are some of the entrepreneurs that you personally look up to for seeking inspiration?
Satyen kothari: Aditya Puri, Uday Kotak Jeff Bezos and President Obama.
11) One word that aptly defines the spirit of entrepreneurship?
Satyen kothari: Belief: inn yourself, your vision, your team, your determination.
