TTB is pleased to announce our investment in KTrade, a fintech retail trading app created by KASB Securities, the leading stock brokerage in Pakistan. TTB joins the USD4.5m funding round along with global investors including HOF Capital from New York, German fintech investor Christian Angermayer, Managing Partner of German bank Berenberg David Mortlock, and leading Pakistani business families.
KTrade provides easy access to financial markets for retail investors much like its global peers such as XP in Brazil, Zerodha and Groww in India, Tiger in China, Flatex in Germany, and Robinhood in the US.
Since launching in 2019, KTrade has over 200,000 users and aims to reach 10 million Pakistanis at home and abroad by 2023 to invest in stocks, bonds, commodities, and mutual funds through its mobile platform. The Karachi Stock Exchange Index (KSE100) has rallied by 19% per annum over the past 20 years despite regular market cycles. The volumes have increased by 7x over the last 18 months driven by regulatory reforms and increase in retail investor participation. Retail investors now account for over 65% of overall trading volume compared to around 45% 24 months ago. KTrade aims to provide users quick and easy accessibility to this investment opportunity.
Ali Farid, founder of KTrade commented: “People in Pakistan have traditionally turned to gold or real estate when they consider investment options. However, as the regulatory approach, authority and credibility of the Karachi Stock Exchange has grown, more people are getting comfortable with stock market investing. This is an exciting trend but accessibility to these markets remains a hurdle for millions. KTrade will enable this mobile-first population to participate in the investment opportunity. By connecting these people to companies, we can drive capital trapped in unproductive assets into the formal economy which would eventually drive a virtuous cycle of economic growth and higher investments”.
Pakistan is emerging on the radar of global investors as the next Indonesia. A large, young, and growing middle class and high smartphone penetration have created ideal conditions for technology led disruption. KASB’s aim is to provide retail savers access to financial education, information, and financial products and to help them make better financial decisions.
“Most people in Pakistan lack access to formal financial products and their savings in real estate or gold offer inferior returns, are inefficient and have high transactional costs. We aim to democratise access to the capital markets and enable them to make stock market investments. The strong demand for KTrade shows that the market is ready for this transformation. Other regional and emerging markets have seen similar evolution led by successful fintech companies” added Ali Farid.
“Pakistan and South Asia have some of the most exciting market dynamics and demographics globally, and KTrade is well positioned to take advantage of the democratisation of finance in the region” said Jonathan Bond, Managing Partner TTB Partners who were lead investors in the funding round.
“We are delighted to be investing in the latest round of funding for KASB, and to support Ali and his first-class team on their continued journey. We have been extremely impressed by what KASB has built over the past few years, both from a tech perspective and from the educational overlay to investing, which the company has embraced. In particular, we believe that in KTrade, the company has a stellar solution to expanding stock market participation across Pakistan” added Jonathan Bond.
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About KASB Securities
KASB is the leading stock brokerage in Pakistan. It is a member of the Pakistan Stock Exchange and Pakistan Mercantile Exchange and regulated by the Securities and Exchange Commission of Pakistan.
KASB’s mission is to democratise investments by giving people in Pakistan easy access to financial information, education, and products. It operates KASB Varsity, an online MOOC, and KTrade, the leading stock trading application in Pakistan. KASB’s goal is to channel capital to financial markets by broadening the breadth of the capital markets.