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Business News/ Companies / Start-ups/  Groww FY22 profit rises as revenue jumps 760%
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Groww FY22 profit rises as revenue jumps 760%

Groww’s expense for FY22 grew 775% to ₹359.4 crore with a sharp rise in IT, advertising, and employee costs

Groww founders (from left) Neeraj Singh, Harsh Jain, Lalit Keshre and Ishan Bansal.Premium
Groww founders (from left) Neeraj Singh, Harsh Jain, Lalit Keshre and Ishan Bansal.

Online investing platform Groww posted over 2.5 times growth in its net profit for the financial year 2022 to 6.8 crore on the back of a sharp 760% year-on-year rise in its revenue.

The Tiger Global company, which became a unicorn in April 2021, saw its operational revenue jump to 348 crore in FY22, compared to 40.5 crore in the previous year, as per its annual financial statement filed with the Registrar of Companies. Its revenue from domestic services stood at 324 crore.

Founded in 2016 by former Flipkart executives Neeraj Singh, Harsh Jain, Lalit Keshre and Ishan Bansal, Groww is an online investment platform that allows users to invest in stocks, direct mutual funds, exchange-traded funds (ETFs), and initial public offerings (IPOs).

Groww, which is operated by Nextbillion Technology Pvt. Ltd, also provides tools for stock and portfolio analysis to investors.

The wealth management and investment platform had raised two large rounds in the financial year 2021. The company bagged $251 million in October 2021 in its Series E round led by Iconiq Growth.

The fundraise nearly tripled its valuation to $3 billion in a little over six months.

The company claims to have over 40 million users on its platform. It launched stock investments on its platform in July last year and recently launched futures and options investment in IPO and sovereign gold bonds on its platform.

Groww’s expense for FY22 grew 775% to 359.4 crore, up from 41 crore in the previous fiscal, with a sharp rise in IT, advertising, and employee costs. The company’s IT expense, which includes software, server and platform charges, ballooned to 145.5 crore in FY22, compared to 16.87 crore in the previous fiscal.

The company’s expenditure on advertising grew substantially to 52.2 crore from just 79 lakh in FY21. Whereas, its employee benefits expense jumped to 66.8 crore in FY22, up from 10.32 crore.

In FY22, Groww acquired Indiabulls Asset Management Company Limited’s mutual fund business for a total of 175 crore. The acquisition helped Groww offer newer investment products to its users.

In the wealth management and investment space, Groww pits against Zerodha, Upstox, Kuvera, 5Paisa, and AngelOne, among others. However, in comparison to most of its rivals, it has a larger user base, courtesy of mutual fund investment services

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Published: 10 Nov 2022, 05:17 PM IST
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