Upstox - CEO rubbishes claims from multiple employees
The Tiger Global-backed online broker has seen at least half-dozen senior-level departures over the past year, as it tweaked its business st...
https://yourstory.com/2023/05/upstox-online-brokerage-leadership-exits?utm_pageloadtype=scroll
US expansion was never on cards. Saying that the leadership left as plans to enter US did not kickoff is just a smoke screen for actual issues.
K
The founders burnt 500+ crore on marketing in the last 1.5 yrs.
Ravi, the CEO in an article from Mar'23 on rapidly declining active user count said that while we acquired users through marketing, they left because the product did not have the features the users were looking for. A 500+ crore learning 😂😂
500 cr, wow. Will be great to see the returns on this huge spend.
On a different note, it does take a lot of creativity and ambition to burn through 500 cr in 18 months. 1 cr per day. 😁
Speaking of returns there is a yourstory article from around Apr'22 where the founders posed as superhumans with cape and all. There were claims of user count crossing 1cr and Upstox being ahead of Zerodha.
SEBI has a rule to mark demat accounts as dormant (can not trade again until KYC is done again) if there are no trades in last 12 months. Upstox has slipped to 4th from 2nd in market share (active user count) losing about 500 bps since the article due to the rule. Current active count was 32 lakhs in Mar'23 as per NSE data.
Upstox was gifting new users ETFs worth Rs. 100 on account opening. This artificially pushed up the active user count and its market share. So the slip was bound to happen after 12 months. Users were acquired through referral scheme and all these accounts were opened just to make easy referral money and not for trading in the markets.
Referral Scheme: Refer someone and earn referral money if the referee trades. Referral benefit was upto Rs 1200 per refferal at its peak. Referree just bought penny stocks - just buy and sell shares for like Rs 10 and the referer gets 1200.
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Must read of people looking to join Upstox. All claims by employees are true.
Instead of rubbishing the claims of employees, the founders should introspect but the lack of any kind of engg culture prevents that.
TrueMalice57
Stealth
a year ago
I talked to a bunch of employees (6-7) on LinkedIn cuz I'm expecting an offer from them, all these guys were praising the work culture, saying that's it like a regular startup where some days you need to push extra but otherwise it's chill, and you get to learn a lot.
After reading this article, color me surprised.
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