Groww, an investment and wealth management platform, announced on Monday that it has secured $251 million in a new Series E funding round. The round was led by ICONIQ Growth and saw the participation of investors including Alkeon, Lone Pine Capital, Steadfast, Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners. The company has now raised $390 million to date, and the latest funding increases its valuation to $3 billion.
Established in 2016, Groww helps retail investors invest in mutual funds, futures, stocks, derivatives, exchange-traded funds and initial public offerings through its platform. In India, where the startup operates, more than 200 million people transact money digitally, but fewer than 30 million currently invest in mutual funds and stocks. To turn the situation around, Groww provides access to investment offerings to help more individuals start their investment journey in the world’s second-largest internet market.
“Over the last five years, we have built a product that customers love and have lowered the barriers to investing across India. We are making a difference in the lives of millions of Indians by democratizing access. And it seems the journey has just begun with such a huge opportunity ahead of us,” Lalit Keshre, Chief Executive Officer and Co-founder of Groww, said.
The startup recorded over 15 million registered users earlier this year, two-thirds of whom were first-time investors, and about 60 percent of Groww’s users come from smaller cities and towns of India —places where, before now, investment opportunities and services were inaccessible.
Commenting on the funding, ICONIQ Growth Partner Yoonkee Dull said: “The financial services market in India is already large, growing rapidly, and ripe for disruption. During the last couple of years, Groww has demonstrated that they are ready to seize that opportunity through strong accelerating momentum predicated on strength of technology.”
He further commented that the financial services market in India is already large, growing at a swift rate, and ripe for disruption. “Driven by an exceptional product-oriented team, Groww is already amongst the leading investment platforms in India, showcasing strong unit economics and customer cohorts. We are excited to participate in the company’s vision to be the primary financial platform for Indian consumers,” he said.
Groww plans to stretch to more under-penetrated areas, strengthen the team and scale tech infrastructure. The company said it will use the fresh capital to increase its product offerings and invest in creating investment awareness and spreading financial education.
Groww, like a host of other Indian fintechs, also has plans to venture into investments and transactions in cryptocurrency.