How Bullspree is educating the next Generation of Indian Retail Investors

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Bullspree established in 2020, is a game that enhances the experience of trading stocks and allows investors to participate in games with minimal risk

In the last few days, the startup has raised $400K through an initial round of capital from a variety of angel investors

Bullspree has enrolled more than 250,000 users as of now, with a the active user base per month of 85,000

In the India’s Economic Survey for 2021-22, the retail investor accounted for 44.7 percent share of cash segment of equity turnover in the National Stock Exchange (NSE) between April to October 2021.

In May 2022 the Union finance minister Nirmala Sitharaman told the Parliament that more than 2.6 Mn demat accounts were opened each month from 2021 to 2022, which is 6.5X from 0.4 Mn of new accounts each monthly in the 2019-20.

The rising equity markets in the last year and the funding-driven IPO excitement in Indian startups saw more investors join the bandwagon of equity. But, only a tiny portion of retail investors actually make an income from the equity market, with the significant majority of them taking losses on their investment.

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The majority of it is due to an insufficient understanding of finance and resources to conduct adequate research prior to investing. The stock market is a risky investment since it involves real money, and the losses once incurred are the responsibility of a retail investor to carry for the rest of their lives.

To remedy this the Ahmedabad-based company Bullspree is working to offer an actual experience in investing in stocks without the threat of losing money. It was founded in the year 2020 in the year 2020 by Dharmil Bavishi Harsh Dhanawat as well as Divyansh Mathur Bullspree provides users with education by making the stock market experience more fun by using games.

The startup has already signed over 250,000 users. The company has a an active monthly users with a total of 85,000.

The Investment Games

According Bavishi’s advice, someone seeking to learn more about retail investing must first sign up through the platform. Then, following a quick KYC that includes verification of the PAN number, the registration is completed.

The user can deposit some funds into the app wallet and begin investing into the stocks by participating in competitions.

However, there’s an issue. The user isn’t able to utilize real money to purchase stocks. Instead, the money is used to pay for an entry fee to join numerous live contests in the application.

If a participant participates in an event that is based on cohorts using real money, they receive Bullspree virtual currency. The amount varies from 4,000 to 8,000 coins to 10,000 coins, based on the kind of contest as well as the prize money being offered.

There’s no limit to the number of contests that a participant can be a part of; provided they are able to pay the entry fees they are able to take part in the contest.

Investors are invited to construct an investment portfolio with the virtual coins. So we’ll say that someone owns $10,000 Bullspree virtual coins. He put 5,000 of them in Reliance and 2,000 in TCS and the rest in Unilever. Once he has deployed the coins, he will have the option of paying a joining cost, Bavishi explained.

To ensure that it is as authentic to a real-world experience as is possible, Bullspree has a direct stream of data from market that reflects the most accurate prices for stocks. Investors can track their portfolios using a live leaderboard , and the top portfolio is that that has the most value at the conclusion of the competition.

The co-founder also said that while the contest is running the typical contest duration is about six hours, the investor has access to a variety of information about the stocks that were chosen.

Meanwhile the analyst has the ability to the company’s history by analyzing their pattern, their historical trends and the number of people who have chosen to invest in this particular stock. What are the fundamentals of the market that the share is based on? What’s a market capitalization? What is the PE ratio? said Bavishi, saying that customers also have access to 30 second videos that explain the most important concepts of the market if one is unsure of the similar.

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The business model of Bullspree is based on contests. Investors must pay a fee to join in order to take part and that’s the main source of income.

According to Bavishi’s analysis that, out of the total sum of money collected, Bullspree takes a commission of 20%, and the remainder is split between the highest 65% of contestants. So, if an investor is able to finish within the 65th percentile of the contest, he or she is still eligible for a certain amount of compensation.

Users can cash out their winnings when they reach the INR 100-mark with respect to winnings, by connecting their bank accounts to the application. In addition to winnings, investors get a lot of insight about why their portfolio behaved as they did in the conclusion of every contest.

Bullspree recorded an Day 30 retention rate of 57% in July with an average profit per user paying INR 250 per month.

The startup has recently has raised $400K through an initial round of funding from co-founders from Swiggy’s Dineout, Lighthouse Canton MD-Wealth Management India Manas Chadha and senior partners of the legal company Luthra & Luthra, Infibeam Avenues CEO and MD Vishal Mehta Cisco Director of Finance Amit Khetan and others.

Bullspree has already used the money it received to improve its technology capabilities and recruit employees all over the world.

The importance of educating GenZ Retail Investors

In discussing the motivation behind beginning Bullspree, Bavishi said that the team that founded Bullspree realized there was a need in the education of individuals who are interested in investing in the market for stocks.

Whenever you see Gen Z retail investors, aged between 18-25, begin their retail investment journeys beginning on DIY platforms. The people who use these platforms end up losing hundreds of thousands or even lakhs of dollars just to achieve two distinct factors: adrenaline and the expectation of greater returns, Bavishi explained.

He explained that Bullspree intends to make the investment process through the use of gamification. According to the co-founder, investors are able to build confidence and experience an experience-based learning journey.

We are determined to empower investors primarily aged 18-25, he added.

The founder of the company explained the business’s ethos. Bavishi stated that in order in order for the GDP of the country to increase, the retail investment segment needs to expand exponentially. To achieve this, there is an imperative to establish the habit of investing from the moment the person is qualified to invest.

We believe that travelers should not be scared off by the prospect of a loss that is significant in their first journey only to fall dormant…we believe that they require an environment where they can develop their skills and also gain access to expert information.At most, if we are able to create a positive change in the way we mitigate the losses of retail investors, then we have had the potential for a positive impact to our economy, he added.

Future Plan

The startup plans to launch in-app purchases within the coming three months. One of the key options to be offered to users who purchase an in-app item will be the ability to swap in mid-swap, which gives customers the ability to trade on the same day.

Other than mid-swap which is a pure-play source of revenue, Bullspree plans to launch a subscription program.

Right right now we provide the latest macroeconomic news. We provide insights into what went wrong and how it operates in our Telegram groups. We’re looking to make money from this by introducing a subscription service, Bavishi said.

The startup currently offers video clips in bite-sized sizes for no cost. However, Bavishi has stated that this will be put under the paywall after subscription plans are announced.

We are working to incorporate 16 straightforward topics on the stock market into 30 second small videos that will be added within the next 45-60 hours, Bavishi added.

Bullspree hopes to create an environment of safety for young retail investors trying to get that first taste of the market. The gamified approach as well as lots of hands-on help let ‘investors’ learn while playing learning the essential skills to compete in the major leagues of the future.

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