Groww’s parent Nextbillion Tech turns a profit as consolidated revenue jumps 14-fold in FY21

Currently, the company claims to have more than 20 million users on its platform, with 70% of its investors coming from tier-II and -III geographies.
Currently, the company claims to have more than 20 million users on its platform, with 70% of its investors coming from tier-II and -III geographies.

Summary

The company reported a net profit of 27.28 crore in FY21 against a loss of 79.36 crore in FY20

Nextbillion Technology Pvt. Ltd, which operates Groww, has turned profitable thanks to its exponential rise in its revenue, according to regulatory filings obtained by VCCircle.

The company reported a net profit of 27.28 crore in FY21 against a loss of 79.36 crore in FY20, the company’s filings with the Ministry of Corporate Affairs (MCA) show. Consolidated revenue rose to 40.4 crore in the fiscal year 2021 from 2.9 crore in FY20, a 14-fold increase. The majority of revenue came in from brokerages and allied services income which rose from 2.9 crore     in FY20 to 347 crore in FY21.

The company’s software and licence charges saw a steep increase to 168 crore, which can be attributed to its entry into the brokerage business. Employee wages and bonus costs rose to 8.31 crore against 4.66 from the previous year.

Earlier this month, Satya Nadella, Chairman and chief executive officer of Microsoft Corp., joined Groww as a new investor and adviser.

In October 2021, Groww raised $251 million as a part of its latest Series E funding led by IconiQ Growth, almost tripling its valuation to $3 billion in a little over six months. The investment platform was expected to use the proceeds from that round of funding to expand its technology infrastructure and widen its reach to under-penetrated regions. It was also planning to use the funds to continue making significant investments in creating financial education and awareness about investment products.

“Groww’s objective is to ensure that customers have all the investment options available to them...The platform should be able to provide customers with the right selection and tools to help them make the right decision," Lalit Keshre, CEO and co-founder of Groww, said in an interview.

Groww had raised $83 million in April 2021 as a part of its Series D round led by Tiger Global, which valued the company at a little over $1 billion.

Groww allows users to invest across direct mutual funds, exchange-traded funds (ETFs), stocks and IPOs. It also provides tools for stock and portfolio analysis for investors.

Currently, the company claims to have more than 20 million users on its platform, with 70% of its investors coming from tier-II and -III geographies. It has about 2 million users leveraging Groww’s platform to invest in stocks.

The company, which counts Sequoia India, Ribbit Capital, and Propel Ventures among its backers, recently launched futures and options, investment in initial public offerings (IPO) and sovereign gold bonds on its platform.

It was also looking to launch investment in US-based stocks for its investors.

 

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