Punch

Punch is a fintech platform for online stock and index options trading, focused on simplicity and safety for retail investors in India. SEBI-registered and backed by top investors, Punch has quickly surpassed one million app downloads and reported strong revenue growth.

Core Products and Services 

• Protection Orders: Built-in stop-loss and target features for automated risk management.

• SmartSL: AI-driven recommendations for optimal stop-loss and target levels.

• Split-screen charting: Compare spot and options charts simultaneously for better analysis.

• Advanced F&O tools: Open Interest, Put/Call Ratio, OI Change, VIX and more for market insights.

Business Model & Revenue Stream 

• Primary revenue: from flat ₹20 brokerage fees per executed order on stock and index options trades (NSE/BSE).

• No account opening or maintenance charges:—transparent, cost-effective pricing for retail traders.

• Additional income: from premium platform features and referral partnerships.

• Over 90% of current revenue: comes from options trading; equity trading is expected to contribute as it launches.

• Customer base: is predominantly B2C, with 60–70% first-time or part-time traders, focused on the Indian market.

Top Clients & Partnerships

• Retail-focused platform: No single large client concentration; broad base of individual traders.

• Key investors: Backed by Stellaris Venture Partners, Susquehanna Asia VC, Prime Venture Partners, Innoven Capital, and notable angels like Kunal Shah (Cred) and Nitish Mittersain (Nazara).

• Market integrations: Directly connected with NSE and BSE for real-time trading and data access.

• Growth partnerships: Runs referral and community programs with influencers and educators to drive user acquisition.

• Diversification: Expanding into direct equity trading to further broaden its user and revenue base, reducing reliance on options trading.

Future Outlook & Strategic Priorities 

• Growth Focus: Aggressively scaling user base (targeting 4–5x growth in the next year) and expanding into direct equity trading alongside options.

• Product Innovation: Major investment in R&D to enhance safety-first trading tools, AI-driven risk management, and user experience.

• Market Expansion: Strengthening community and influencer partnerships to drive adoption among new and part-time traders.

• Risk Management: Prioritizing responsible trading features to address regulatory scrutiny and protect inexperienced users (reflecting recent market trends).

• Capital Allocation: Funds directed toward technology, product development and talent acquisition to maintain a competitive edge.

• Key Risks: Regulatory changes in F&O trading, intensifying fintech competition and the ongoing need for user education.