Investment platform Groww raises $21-m Series B funding

Thomas Abraham Bengaluru | Updated on September 19, 2019

Lalit Keshre, Co-founder and Chief Executive Officer,Groww

Will use proceeds to invest in technology and to build multiple products, says CEO

Online investment platform Groww has raised $21.4 million (aproximately ₹152 crore) in Series B funding from US-based Ribbit Capital, along with existing investors, Sequoia India and Y Combinator.

Speaking to BusinessLine, Lalit Keshre, Co-founder and Chief Executive Officer, said: “We will use the funds to scale up our operations in terms of hiring more people, investing in technology, setting up infrastructure to support millions of users, and building multiple products.”

The company, which started in May 2017, currently has 100 employees. It now plans to expand this to more than 200, especially to hire top talent. It plans to put in place “super scalable infrastructure for investing” using these funds. “We started Groww to democratise financial services in India,” said Keshre, adding it is the “go-to platform for the new generation of investors”.

“The investors are very young. In fact, about 10 per cent are students,” said Keshre.

Currently, Groww offers commission-free investing in mutual funds (direct funds) through its website and app on both Android and iOS operating systems. Asked when Groww would start generating revenues, Keshre said: “We will soon be launching premium products and advisory.”

“Our USP is the simplicity of our product. And because you invest directly, you save on commissions. We hardly do any marketing. We are growing through word-of-mouth marketing,” said Keshre.

Groww has an app-rating of 4.6. The platform currently has 25 lakh users across India. Interestingly, over 60 per cent of these investors hail from outside the top six cities.

“That shows our app is the most-loved one in the country for the purpose of investing,” pointed out Keshre.

Moreover, more than two-thirds of the users are first-time investors. “So, it is the simplicity of our platform that draws these first-timers to Groww,” claimed Keshre.

According to Keshre, there are about two crore investors in the market now. But there are 23 crore fixed deposits. “You have fixed deposits only when you have money. So, there is a market for investing. And Groww fits that space very beautifully with its simplicity,” Keshre pointed out.

Micky Malka, Founder, Ribbit Capital, said: “We backed the Groww team because we believe in their mission. They have built the most trusted product in this space and are on the path to create a category-defining product.”

Published on September 19, 2019

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