Groww Valuation: India's Investment Platform Eyes $3 Billion Funding

Groww Secures Funding at $3 Billion Valuation

Groww, an Indian fintech startup focused on enabling millennial investment in mutual funds and stocks, is reportedly nearing a new financing agreement. Discussions are at an advanced stage, with a potential valuation of $3 billion, according to six sources with knowledge of the negotiations.

Details of the Proposed Funding Round

The Bangalore-based company is currently negotiating a $250 million funding round. These sources requested anonymity due to the confidential nature of the discussions. Completion of the round is anticipated within the coming weeks.

It's important to note that the specifics of the deal are subject to change. Groww has received multiple indicative termsheets featuring comparable conditions in recent days.

Potential Investors

Several prominent investment firms are considering leading or co-leading the round. These include Tiger Global, Coatue, and TCV. Furthermore, Insight Partners and others have also expressed interest in participating as investors.

A representative from Coatue declined to provide a comment. Requests for comment directed to Groww’s chief executive officer have not yet received a response.

Market Opportunity and Groww’s Services

Groww is capitalizing on a significant market opportunity within India. While over 200 million individuals in India engage in digital financial transactions, fewer than 30 million actively invest in mutual funds and stocks.

The platform facilitates investments in a variety of asset classes. These include mutual funds, systematic investment plans (SIPs), equity-linked savings schemes, gold, and stocks – including those listed on U.S. exchanges. The application provides access to all currently available funds within the Indian market.

Growth and Financial Performance

Investor enthusiasm for Groww is fueled by substantial recent growth. The company is projected to achieve approximately $35 million in annual recurring revenue (ARR), as indicated by two individuals familiar with the financial projections.

Previously valued at $1 billion in April and $250 million in September of last year, Groww currently has Tiger Global and Sequoia Capital India as existing investors.

Potential Expansion into Cryptocurrency

Internally, Groww is evaluating a potential expansion into the cryptocurrency market. However, a definitive decision regarding the timing of offering crypto trading services has not yet been made.

Broader Trends in Indian Startup Funding

The ongoing investment discussions and the proposed valuation increase reflect the heightened interest in Indian startups. This year has seen a significant surge in the number of Indian companies achieving unicorn status.

More than two dozen Indian startups have attained a $1 billion valuation in 2021, a substantial increase from the eleven that reached this milestone in the previous year.

Recent Unicorns in India

The list of Indian unicorns continues to grow. Mobile Premier League, an Indian esports firm, recently secured funding at a $2.3 billion valuation. Additionally, Apna – a platform connecting low-skilled workers with opportunities – and CoinSwitch Kuber, a crypto trading application, are also reportedly in discussions to raise new funding rounds at unicorn valuations.