Nikhil Aggarwal Shares the Curated Investment Opportunities In Lease Finance With A Low Minimum Investment Amount

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Grip Invest Story

Grip Invest Story
Building India’s alternative investment platform for retail investors because individuals today have very few investment options especially in countries like India on account of a very high transaction size to participate in alternative investments. Grip is creating a platform to offer such investment opportunities at a low minimum ticket size while combining a great user experience built on transparency access to information and transactional ease, grip has been in operation for 18 months and they have facilitated 150 crore rupees in investments over the last 18 months.

Grip Invest Inspiration
Eight years back, Nikhil Aggarwal the founder of Grip Invest was in his first job as an investment banker with Morgan Stanley who used to earn a good salary but because of working in an investment bank had lots of restrictions on investing in stock markets because of access to public information, access to confidential information.

His only investment option hence was to invest in fixed deposits. He wasn’t generating any returns for himself through those options and hence he was looking for alternative non-market linked options to invest money. But all the available options to me were simply not affordable. All of it required him to invest hundreds of thousands of dollars which Nikhil as a young professional couldn’t and hence uh that was the frustration with which the idea of a grip came.

Eight years ago the regulation regulatory environment was not supportive and the tax environment was not supportive for a business like this. Iw was not able to execute this idea then I ended up building or launching a different business in the mobility space and running that business for four years. when I left that business this idea of grip was still somewhere in my mind and but the dynamics had changed. The market had now become feasible for us to actually execute the idea and that’s how we started off last year” said Nikhil Aggarwal.

The Core Problem

What problem is Grip Invest Solving?
Helping the broad base of individuals in India white-collar salaried to year-olds who wish to increase their wealth by finding alternative investment options that have traditionally not been available to them.

Also, those for those investors who typically have their investments only in two locations one is in fixed deposits with banks and the other is in the stock market & unfortunately does not generate significant returns.

The majority of such people keep the majority of their wealth in a bank deposit It’s a savings account in a bank and the rate of return in India from the saving account is typically around five percent per annum. The inflation rate in India is higher than five percent so they are actually losing money by keeping their money in the bank account. Because the inflation rate is more than the returns investment rate so before grip these individuals were actually losing wealth rather than generating wealth.

The Target User

Is the investment platform for everyone?
The investment platform is currently for Indians only. They may be based in India or they may be based outside India but currently, the platform is only limited for Indian investors over a period. Over a period of time GripInvest aims to open it up to other investors as well.

What kind of investors would benefit a lot if they take advantage of the platform?
Twenty-five to forty-year-old white-collar employees working in a tier-one city is the is a common persona of our users. These are people who earn about 80 000 rupees every month as salaries and are looking for ways to invest that money in various investment opportunities.

Also, investors that typically have their investments only in two locations one is in fixed deposits with banks and the other is in the stock market whether through mutual funds or direct stock purchases this is the portfolio of 99% of such people.

This portfolio, unfortunately, does not generate significant returns and nor is it diversified to be a healthy portfolio. Grip Invest is creating investment options that allow them to diversify and earn a better rate of return. Grip Invest could also help those individuals who have parents who are now retired and their parents don’t generate any monthly income.

What were they doing before Grip Invest?

Losing Money
The inflation rate in India is higher than five percent so investors in the banks are losing money by keeping their money in the bank account. Because the inflation rate is more than the returns investment rate so before grip these individuals were actually losing wealth rather than generating wealth.

Sending Money to Retired Parents Continuously
Investors would transfer money directly to their parents let’s say they needed $10k a month right so they would transfer $10k to their account on a monthly basis for them to use.

Can you describe what life looks like after they invest in Grip Invest?

Better Return of Investment
Returns that grip offers are about four times higher than what is offered by a bank deposit. That this money that they are deploying on the platform is actually leading to wealth creation for people who were earlier at losing money. Now with Grip Invest, you can lend it directly to the business, and then that’s why you have a much better return on your investment.

Better Way of Helping Retired Parents
Instead of transferring that money, they make an investment of say ten thousand dollars one time in the name of their parents. and every month returns flow to their parents against that investment more empowering for the parents who are receivers than the old way of sending money which looks like a charity.

Innovation & Key Difference

How can investors make sure that Grip Invest is safe?

The first level of protection
Every company that comes to Grip Invest to raise money goes through our Grip Invest’s Credit Diligence Process. They make sure they comply with their framework and our standards for a viable transaction include the financial review of the company, financial review of the underlying, security which may be vehicles machinery, a review of the promo of the founders of the company must be backed by a well-known venture capitalist or a private equity firm and that gives us comfort on the corporate governance.

Second level protection
Ten percent of the transaction value is kept as a security deposit with Grip Invest from the company side.

Third level protection
Returns are on an EMI basis or on a monthly basis it is not a repayment at the end of the tenure but the repayment begins immediately the first repayment is due within 30 days because of this the money is constantly coming back to the investor which further acts as a way to protect the investor

Fourth level protection
An ecosystem of partners has enabled that in the case of a default or a failure to pay our ecosystem has the ability to recover the underlying security give it to someone else and sell it in the market and recover value for Grip Invest’s investors so this is the mechanism that Grip Invest has created to protect the investors’ interest.

What are the next steps?

For now, Grip Invest is eyeing if they can allow Indians to make overseas investments because a lot of Indians are keen to make investments outside the country.
” We’d like to see how we can offer those investment opportunities. Allow non-Indians to invest in India so that’s I think the roadmap we see for ourselves” Nikhil Aggarwal stated.

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