The startup has raised $83 million in latest funding round led by Tiger Global Management
Groww Academy was launched last year to help users with investments and personal finance
Investment platform Groww said on Wednesday that it has raised $83 million as a part of its Series D funding round led by Tiger Global Management at a valuation of more than $1 billion. Existing investors Sequoia India, Ribbit Capital, YC Continuity and Propel Venture Partners also participated in the round.
The funding comes just six months after the company raised $30 million as part of its Series C funding in September last year, led by YC Continuity, Y Combinator’s growth stage fund.
Groww is the second fintech startup to turn unicorn this week, after Kunal Shah-founded Cred. With this, three Indian startups have become unicorns in the first week of April, including API Holdings, the parent of online pharmacy PharmEasy.
Groww plans to use the funding to expand its product line, hire fresh engineering talent and invest in new education initiatives for first-time investors.
The five-year-old company allows its users to invest in stocks, direct mutual funds, exchange traded funds (ETFs) and digital gold, as well as initial public offerings (IPOs).
“We started Groww almost five years ago to make investing accessible and transparent to everyone in India. We have made good progress, but it feels we have just got started. Only around 25 million people in India are investing in stocks or mutual funds. We will continue working to change this. The new capital will help us invest in new products, acquire talent, and continue building our financial education platforms," said Lalit Keshre, chief executive officer (CEO) and co-founder, Groww.
The startup claims to have added almost 7 million registered users in the last six months alone. It claims to have close to 15 million registered users, including 4 million active monthly users.
The company launched its stock broking business, Groww Stocks last year and claims to have opened 2 million trading accounts till date. It also witnessed close to 250,000 new SIPs made on its platform, every month.
Through this new funding, the startup plans to launch futures and options, as well as derivative trading, on its platform and provide alternative investments to users through investment in government bonds.
Groww competes with online stock brokerages Zerodha and Upstox, as well as Paytm Money, the wealth management division of One97 Communications Ltd, the brand that owns Paytm.
Bootstrapped, Zerodha entered the unicorn club in June last year following an ESOP buyback exercise.
Mint recently reported that Paytm Money aims to reach 10 million users and more than 75 million transactions by the end of March 2022. Currently, it has close to 7 million users.
Last year, the investment platform also started Groww Academy to educate new users on investments and personal finance.
According to a recent study undertaken by Boston Consulting Group (BCG) and the Federation of Indian Chambers of Commerce & Industry (Ficci), valuations of Indian financial technology companies are expected to triple in the next five years, reaching $150-160 billion.
At present, the total valuation of India’s burgeoning fintech sector is estimated to be between $50-$60 billion.
There are a total of 2,100 fintech startups across the country, with almost 67% of them being set up in the last five years, according to the BCG-Ficci study.