Ratan Tata sells 5% stake in Upstox. The gains will surprise you

Despite this partial sale, Ratan Tata still holds 95% of his original stake in the company.

In Short

• Ratan Tata sells 5% of his stake in Upstox
• He retains 95% stake after buyback from Upstox
• Upstox continues to grow with strong revenue and client base

Mumbai-based stock broking startup Upstox has bought back 5% of Ratan Tata's shares, delivering him an impressive 23,000% return on his initial investment. Despite this partial sale, Tata still holds 95% of his original stake in the company.

Tata's journey with Upstox began in 2016 when he purchased a 1.33% stake. After an equity round in 2022, his stake was reduced to 0.9%, as per Tracxn data. The recent buyback was completed at a $3.5 billion valuation, which Upstox had achieved in 2022.

Kavitha Subramanian, cofounder of Upstox, shared her gratitude for Tata’s early involvement. She said, “We are particularly honoured that Mr. Tata, a respected and iconic figure in India, has been such a key part of our journey. His early belief in our vision was a huge vote of confidence, and his challenge to us was both simple and profound: 'How can we offer the same top-quality wealth advice to the everyday Indian that wealthy individuals receive?' This question has been at the heart of everything we do at Upstox.”

She added that this vision led to the creation of Upstox Wealth, a platform designed to give all Indians access to the best financial tools, no matter their background or investment size. “Our mission is to deliver strong returns for all our investors, and we’re proud to say that today we’re able to return part of Mr. Tata’s investment,” she said.

Upstox has grown rapidly, reporting a net profit of Rs 25 crore in FY23, with gross revenue crossing Rs 1,000 crore. It now has 2.7 million active clients, according to the National Stock Exchange (NSE).

Subramanian also noted that Tata’s decision to hold onto most of his stake shows his continued belief in Upstox’s mission. “His support pushes us to keep going, and we remain committed to our goal: to provide accessible, high-quality wealth management for every Indian. We won’t stop until everyone has access to the tools they need to build their financial future.”

This buyback highlights Tata’s continued faith in the startup and Upstox’s drive to empower everyday investors across India.