Groww Raises $83M: Investment App for Millennials Soars

Digital Investment Growth in India

Currently, over 200 million individuals in India utilize digital platforms for financial transactions. However, participation in the stock market and mutual funds remains considerably lower, with fewer than 30 million actively investing.

A recent financing announcement by an Indian startup focused on attracting millennial investors signals a potential shift in these numbers. The company has achieved unicorn status within the world’s second-largest internet market.

Groww Secures Series D Funding

Based in Bangalore, Groww has successfully raised $83 million in its Series D funding round. This valuation propels the startup’s worth to exceed $1 billion, a significant increase from the $250 million valuation attained during its $30 million Series C round in September of the previous year.

Tiger Global spearheaded the latest investment, with participation from existing investors including Sequoia Capital India, Ribbit Capital, YC Continuity, and Propel Venture Partners. To date, the four-year-old Indian startup has accumulated a total of $142 million in funding.

India's Unicorn Boom

Groww represents the eighth Indian startup to reach unicorn status in the current year, and notably, the fourth within this week alone. Recent additions include Meesho (social commerce), CRED (fintech), and PharmEasy (e-pharmacy), which also announced a new funding round valuing it at approximately $1.5 billion.

Investment Options Available

Groww provides a platform for users to invest in a diverse range of financial products. These include mutual funds, systematic investment plans (SIPs), equity-linked savings schemes, gold, and stocks – encompassing both Indian and U.S. exchange-listed companies.

The application provides access to all available funds within the Indian market.

User Base and Growth

The startup has garnered over 15 million registered users, with a substantial two-thirds representing first-time investors, as stated by Lalit Keshre, co-founder and CEO of Groww, in an interview with TechCrunch.

Founded by four former Flipkart executives – including Harsh Jain, Neeraj Singh, and Ishan Bansal – the company intends to utilize the newly acquired funds to accelerate expansion and bolster its talent pool. Keshre affirmed, “We are now equipped for long-term strategic planning and expedited growth.”

Reaching New Investors

Over 60% of Groww’s user base originates from smaller cities and towns across India, and a significant 60% of these individuals are making their initial investments. The startup has proactively conducted educational workshops in numerous smaller cities to enhance financial literacy.

Market Dynamics and Future Outlook

The onset of the coronavirus pandemic has further fueled the startup’s growth, as individuals, particularly younger demographics, explore new avenues for financial engagement. Groww operates within a competitive landscape, facing rivals such as Zerodha, Paytm Money, Upstox, ET Money, Smallcase, and established financial institutions.

Keshre concluded, “Our initial goal with Groww, almost five years ago, was to democratize investing and promote transparency for all Indians. We’ve made considerable strides, but we believe our journey has only just begun.”