Anand Rathi Digital Wealth

AR Digital wealth ("DW vertical") is a fin-tech extension of our proposition, born from the extensive learnings from experience in the Private Wealth solutions. The idea was to address the large mass affluent segment of the market with a wealth solution delivered through a 'phygital ch annel' i.e a combination of human distributor empowered with technology. It seeks to build a scalable and profitable model by using this blend of technology capabilities and human interface.

This segment of the business was launched in 2016 and in a short time frame has seen encouraging results in its attempt to build a 'Partner' led distribution model through whom a packaged investment solution is delivered. 'Partners' are IFAs and AMFI registered Mutual Fund Distributors who are seeking to grow their business by taking the Anand Rathi brand, product research, selection and investment insights to their clients through an innovative easy-to-use technology interface. The business is also in the process of building a remote direct sales team that will be able to deliver this proposition using virtual channels and onboard the client through its online account opening process.

As on 31st March 2023, the AuM for our DW vertical was ₹ 1,051 crores with more than 4,249 clients. The offering has a dedicated client mobile application and that is the primary mode of engagement between the partner and the client. This enables a single Partner to service a larger number of clients even though the client segment has a lower average AuM size. This results in positive unit economics of the business. We believe this model is highly scalable with a disruptive channel strategy since is not dependent on its geographical presence and can reach cities where physical scalability may not be cost-effective.