Groww Raises $ 251 Million, Triples Its Valuation To $ 3 Billion In 6 Months


BENGALURU : Wealth and investment management platform Groww raised $ 251 million in its latest Series E funding led by Iconiq Growth, nearly tripling its valuation to $ 3 billion in just over six months.

In April, the company had raised $ 83 million in its Series D funding round led by Tiger Global, which valued the company at just over $ 1 billion.

With this round, the company has raised nearly $ 535 million to date.

Existing investors, including Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global and Propel Venture Partners, participated in the round. New investors included Alkeon, Lone Pine Capital and Steadfast.

Groww is expected to use the product of the last cycle to expand its technology infrastructure and expand its reach to under-penetrated regions. It will also use the funds to continue to make significant investments in creating financial education and awareness of investment products.

“Groww’s goal is to ensure that clients have all the investment options available to them to invest in different instruments. The platform needs to be able to provide customers with the right selection and the right tools to help them make the right decision. Today, a product like mutual funds is our flagship product, and we believe that 100 million clients in India can invest in mutual funds, ”said Lalit Keshre, CEO and co-founder of Groww, in an interview.

The company recently launched futures and options, investments in initial public offerings and sovereign gold bonds on its platform. It is also looking to initiate investments in US stocks for its investors.

“We have launched (investments in) US stocks on our web platform. The problem is not with the investment (in US stocks), but rather with the transfer process and the costs. And many market players are looking to solve this problem. We are also working to resolve these remittance issues, but we don’t have a clear timeline to give at this time for the launch, ”Keshre said.

Keshre added that the company is closely monitoring the lending space, but has yet to finalize products to launch in the category.

The company is also looking to launch crypto-based investments on its platform to capture the growing interest of Indian investors in the upcoming asset class, two people familiar with the plans said on condition of anonymity. Keshre, however, declined to comment on this specific development.

Groww, five, is an investment platform that allows users to invest in direct mutual funds, exchange-traded funds (ETFs), stocks, and IPOs. It also provides stock and portfolio analysis tools for investors.

Currently, the company claims to have more than 20 million users on its platform, with 70% of its investors coming from level 2 and 3 geographies. It has around 2 million users taking advantage of the platform. Groww to invest in stocks. Groww launched equity investments on its platform in July of last year.

“Groww is already one of the leading investment platforms in India, featuring a unity economy and strong client cohorts. We are excited to be part of its vision to be the premier financial platform for Indian consumers, ”said Yoonkee Sull, Partner at Iconiq Growth.

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