Investment startup company Groww has secured $83 million in a new funding round, promoting the startup to unicorn status with a business valuation that exceeds $1 billion.
Groww Becomes India’s Eighth Unicorn
The Series D was led by Tiger Global, as well as existing investors Sequoia Capital India, Ribbit Capital, YC Continuity, with the participation of Propel Venture Partners. To date, Groww has raised a total of $142 million in funding from business investors.
The new business valuation makes the investing company the eighth India-based startup to enter “unicorn” territory in 2021 and the fourth this week. Fintech startup company Meesho also announced new funding in recent days.
The investing startup has developed an app to allow retail investors to make investments in mutual funds, systematic investment planning (SIP), equity-linked savings, gold, and stocks. These investments are not exclusive to India but also those listed in the United States (US).
Groww currently has more than 8 million registered users, the majority of which are individual investors, said the company’s co-founder and CEO Lalit Keshre. He said the startup company plans to use the new capital to fund business growth and hire more employees.
“We started Groww almost five years back to make investing accessible and transparent to everyone in India. We have made good progress, but it feels we have just got started. We now have the fuel for longer-term thinking and faster growth,” Keshre said.
Keshre noted that over 60% of Groww users are based in smaller cities and towns across the country, with no investing experience. He adds that the startup business has held a number of workshops in those cities to educate people about investing.
One of the factors that boosted the adoption and Groww’s expansion is the COVID-19 pandemic as millennials were looking for ways to generate passive income while forced to stay at home. Groww’s main competitors include Zerodha, Paytm Money, Upstox, ET Money, Smallcase, etc.
A number of well-established financial companies in India, such as Paytm, have also introduced new business services to allow customers to invest in mutual funds. The ecommerce business giant Amazon has also expanded its array of financial services in India last year.
Keshre founded the investing company in 2016 together with three other former Flipkart executives. Before its Series D, Groww raised $30 million in a Series C round in September last year, led by YC Continuity and existing investors Sequoia India, Ribbit Capital, and Propel Ventures.
“We believe Groww is building the largest retail brokerage in India. At YC, we have known the founders since the company was just an idea and they are some of the best product people you will meet anywhere in the world. We are grateful to be partners with Groww as they build one of the largest retail financial platforms in the world,” said YC Continuity Partner Anu Hariharan at the time.
Indian investment company Groww raised $83 million in its Series D financing round and reached a business valuation of more than $1 billion to become the eighth India-based startup company to enter unicorn status this year.