Groww was reportedly in discussions to close a $250 million round at a $3 billion valuation last month.
Groww, an Indian fintech firm, has increased its valuation to $3 billion in only six months as it seeks to expand its offerings and assist more millennials in beginning their investment journeys in the second-largest internet market in the world.
The $251 million Series A financing round for the Bangalore-based business was headed by Iconiq Growth.
Former investors Propel Venture Partners, Ribbit Capital, YC Continuity, Tiger Global, and Sequoia Capital India, “substantially” contributed to the latest round together with Alkeon, Lone Pine Capital, and Steadfast.
Groww was valued at $250 million in September of last year and $1 billion in April of this year. It has now raised over $390 million.
Millennials can invest with the aid of Groww in mutual funds, futures, derivatives, equities, and IPOs. Groww’s co-founder and CEO, Lalit Keshre, stated that the company is striving to add a number of more asset classes for its users to invest in. They intend to eventually offer them all asset types, he continued.
By democratizing access, they are improving the lives of millions of Indians. We have such a great chance ahead of us, and it appears that the adventure has just begun,” he remarked.
Groww is gaining access to a big market. Less than 30 million Indians presently invest in mutual funds and equities, despite the country’s more than 200 million digital money users.
Earlier this year, the startup had more than 15 million registered users, of whom two-thirds were novice investors. Additionally, smaller Indian towns and cities account for more than 60% of Groww users as per singhtechcrunch.
The company didn’t update its user count today, but according to Keshre, Groww has grown significantly over the past 18 months as more Indians have begun to consider investing.
“The Indian financial services business is already sizable, expanding quickly, and susceptible to upheaval.
Groww has proven over the past few years that they are prepared to take advantage of that potential with strong, technology-based momentum that is accelerating, according to Yoonkee Sull, the partner at ICONIQ Growth.
Groww is already one of the top investment platforms in India, with outstanding unit economics and customer cohorts, thanks to exceptional product-oriented staff. They are eager to contribute to the company’s goal of becoming the main financial platform for consumers in India.
According to Keshre, the business would use the additional funding to expand over time and educate first-time investors.
It was previously revealed that Groww, along with a few other firms in India, is researching cryptocurrencies. According to Keshre, the business won’t provide consumers with such investing opportunities until the Indian regulator gives the go-ahead.
According to the journal, the Indian startup is presently on track to generate roughly $35 million in ARR.
Players like Zerodha, Uptox, Paytm Money, and Angel Broking are in competition with Groww. In the coming year, new players like Dhan and Fisdom hope to amass a user base of one million in the stockbroking industry.
The poor penetration of Indian stock markets, however, is what Keshre is relying on as a growth potential for all players, despite the escalating competition.Groww and a few other Indian businesses have previously been identified as conducting research into cryptocurrencies.
According to Keshre, the business won’t provide consumers with such investing opportunities until the Indian regulator gives the go-ahead. According to the journal, the Indian startup is presently on track to generate roughly $35 million in ARR.
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