A decade ago, investing was a cumbersome process involving extensive paperwork, numerous bank visits, long queues, and days of application processing. Coupled with a lack of knowledge about financial products and widespread misrepresentation by agents, the whole experience was nothing short of a nightmare.
However, nowadays, all you need to start investing, growing, and managing your wealth is a bank account, some disposable income, and a smartphone. Many new investors are opting for platforms such as mutual funds, equities, and other investment options. On the other hand, there are also citizens who used to shy away from investing, but now they are stepping out of their comfort zones. This shift can be attributed to the emergence of Groww, a company that has revolutionized the investment industry by providing easy ways to invest in stockbroking and direct mutual funds.
Let’s delve into the success story of Groww, an organization that has simplified investing for millions of Indians. In the following sections, you will discover details about the founder and history of the company, its mission and vision, the products it offers, its business model, revenue and growth, funding and investors, acquisitions, awards, competitors, challenges faced, and more.
Groww – Company Highlights
| Startup Name | Groww |
|---|---|
| Owner | Nextbillion Technology |
| Headquarters | Bangalore, Karnataka, India |
| Industry | Financial technology, Investment, Mutual Funds |
| Founders | Lalit Keshre (CEO), Harsh Jain, Neeraj Singh, and Ishan Bansal |
| Founded | April 2016 |
| Valuation | $3 billion (November 2021) |
| Total Funding | $393.3 million (November 2021) |
| Operating Revenue | $7 million (INR 52.7 crore in FY21) |
| Website | www.groww.in |
Table of Contents
About Groww and How it Works?
Groww – Founders and Team
Groww – Startup Story
Groww – Mission and Vision
Groww – Name, Logo and Tagline
Groww – Products
Groww – Business Model
Groww – Revenue and Growth
Groww – Funding and Investors
Groww – Acquisitions
Groww – Advisors and Mentors
Groww – Awards
Groww – Competitors
Groww – Challenges Faced
Groww – Future Plans
About Groww and How it Works?
Groww is an online investment platform that enables users to directly invest in mutual funds and equities. The company has developed a platform specifically designed for accessing mutual funds directly. Groww’s technology focuses on simplifying the investment process, making it easily accessible, transparent, and completely paperless. This allows customers to invest in mutual funds without any hassle or complications.
Through Groww, users have the option to invest in mutual funds via Systematic Investment Plans (SIPs) and equity-linked savings. The company boasts a user base of over 20 million registered users, with a majority falling under the age of 40 and preferring to use their mobile phones for investments. The platform offers a wide selection of over 5,000 mutual funds that can be directly invested in through its website and mobile app, available on both iOS and Android platforms.
One of the notable features of Groww is its straightforward pricing structure, which includes low trading fees. Users can invest in mutual funds free of charge without any hidden fees. There are no account opening fees or monthly maintenance costs associated with Groww. Additionally, with Groww’s direct mutual fund plan, users can earn an extra 1.5% on their investments.
Groww also provides users with resources such as e-books, informative blogs, and market updates, enabling investors to make informed decisions. Opening a paperless account with Groww is a quick and simple process. For those interested in participating in the primary market, the platform allows for the submission of online IPO applications. The software even includes a Brokerage Calculator to assist users in their investment calculations.
Groww - Founders and Team
In recent years, a disruptive force has emerged in the investment landscape, empowering young individuals to take control of their financial future. Groww, a pioneering platform founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, seeks to simplify the investment process and make it more accessible to millennials. Through their DIY (Do It Yourself) model, where investors establish and manage their own portfolios, Groww has captured the attention of a generation hungry for financial independence.
Lalit Keshre: Fueling Growth as Co-founder and CEO
At the helm of Groww is Lalit Keshre, a visionary leader and Co-founder who serves as the CEO. With a background in Btech, Electrical Engineering, specializing in Microelectronics from IIT Bombay, Keshre possesses a deep understanding of technology’s potential in revolutionizing traditional industries. Prior to his role at Groww, Lalit made notable contributions to the Product and Engineering departments at IITiam Systems. His entrepreneurial journey began with the founding of Eduflix, and later, he honed his skills at Flipkart’s Product department before embarking on the journey to establish Groww in May 2016.
Harsh Jain: Orchestrating Success as Co-founder and COO
Another driving force behind Groww’s success is Harsh Jain, widely known as the Co-founder and COO. Harsh holds a Master of Technology in Information and Communication Technology from IIT Delhi, a testament to his technical prowess. Additionally, he possesses an MBA specializing in Product Management and Marketing Technology from the prestigious UCLA Anderson School of Management. With a diverse skill set spanning both technology and business, Harsh has played a crucial role in shaping Groww’s strategic direction and operational excellence.
Ishan Bansal: Engineering Financial Empowerment
Ishan Bansal, a Co-founder of Groww, brings a wealth of knowledge and experience to the team. Having completed his BTech in Mechanical Engineering from BITS, Pilani, and earned a Charter Holder distinction from the CFA Institute, Bansal’s expertise lies in the intersection of finance and engineering. He furthered his educational pursuits by obtaining an MBA degree in Finance from XLRI Jamshedpur. Ishan embarked on his professional journey with ICICI Securities before joining Naspers Limited as a Manager. His tenure at Flipkart in the Corporate Development department further solidified his understanding of the e-commerce and investment landscapes, culminating in the decision to co-found Groww.
Neeraj Singh: Empowering Investors as Co-founder and CTO
Completing the quartet of exceptional minds is Neeraj Singh, the Co-founder and CTO of Groww. Neeraj’s educational foundation includes a Bachelor’s degree in Information Technology from ITM University, Gwalior, and a Post Graduate Diploma in Advanced Computing from C-Dac. Beginning his career as a Software Engineer at JDA Software, he honed his skills and later assumed the role of Senior Software Engineer at Ivy Computech. Joining Flipkart in the SDE department further enriched his technical acumen, propelling him to co-found Groww and empower investors with advanced technological solutions.
Groww - Startup Story
The founders of the company observed the transformation in the e-commerce market during their tenure at Flipkart and recognized the immense investment potential. The surge in e-commerce indicated a rise in average income and technological awareness, leading the founders to realize that individuals possess discretionary funds and require assistance in utilizing them wisely.
When the founding team commenced their exploration of financial options for interested Indian consumers, they dedicated substantial time to understanding the market and identifying the primary concerns of users. Numerous tests were conducted to determine the optimal user experience, considering that users’ hard-earned money was at stake. Consequently, developing a secure and reliable solution demanded time and effort.
In 2016, Groww originated as a platform for direct mutual fund distribution and has since evolved into one of India’s most popular platforms for investing in mutual funds. Responding to customer demand, Groww introduced equities in early 2020 and swiftly expanded its offerings to include digital gold, ETFs, intraday trading, and IPOs the following year.
Based in Bangalore, Groww is a brokerage firm that provides online discount brokerage services for a single charge. It facilitates direct investment in stocks, IPOs, and mutual funds. Groww is operated by Nextbillion Technology Private Limited, a SEBI-registered brokerage, and is a member of both NSE and BSE.
In India, approximately 200 million people possess disposable income, but only around 20 million are actively involved in investing. Groww’s objective was to equip consumers with the necessary information, resources, and engagement to enable them to start investing as quickly as possible.
Groww - Mission and Vision
The company’s primary Mission is to offer investors an exceptional experience when it comes to managing their finances.
Lalit Keshre, Co-founder and CEO of Groww, expressed, “In the past few years, we have simplified and brought transparency to mutual fund and stock investments for millions of Indian investors. When we consider the vast potential that lies ahead, it still feels like we are at the beginning of our journey. We initially took small steps, such as creating educational blogs and videos to enlighten people about investing. As our nation’s wealth continues to grow, our mission is to provide investors with the finest possible experience in managing their wealth. We are delighted to collaborate with investors who share our long-term vision.”
Groww - Name, Logo and Tagline
The Groww logo consists of a circle of two colours: Green and Blue. The logo depicts an increasing graph.
‘There’s just one right way,’ says the company’s tagline. The main goal of the company is to make the investing process as simple as possible for their clients. Investors can choose from a variety of mutual funds, and they can also invest in a variety of schemes with varying market capitalizations.
Groww - Products
The list of the products of Groww include :
- Stocks
- Mutual Funds
- Digital Gold
- US stocks
Groww - Business Model
Groww adopts a unique fee structure where the tiny fee is not charged to the client but rather paid by the mutual fund firm. The company generates profits through the funds it sells, although the process involved is complex.
There are two types of mutual fund investments: regular and direct. In the regular mode, a distributor is involved, and the investor is required to pay a commission to the distributor. This commission is designed to compensate the distributor for their services and generate profits.
However, platforms like Groww provide consumers with a direct investing opportunity by consolidating various funds and companies onto a single platform, offering a wide range of possibilities.
For fintech companies like Groww, expanding the customer base is a key consideration. Leveraging technology allows Groww to effectively reach the target audience, resulting in lower operating costs. Users tend to stick with these types of applications once they find the right fit, reducing the likelihood of switching to other platforms.
Groww’s advanced technology enables users to invest in mutual funds and equities from anywhere in the world. With just a few clicks, individuals can become owners of specific stocks or mutual funds, thanks to the convenience offered by the platform.
Groww - Revenue and Growth
Groww: Earnings Surge, Expansion, and New Initiatives
-
Groww’s earnings skyrocketed in FY20, increasing 4.7 times to over INR 1 crore compared to INR 20.14 lakhs in FY19. Operating revenue also saw significant growth, rising 3.25 times to INR 52.05 lakhs, with financial assets contributing an additional INR 48.24 lakhs.
-
In FY21, Groww experienced further growth in operational revenues, reaching INR 52.71 crores in consolidated operating revenues. Revenue sources included brokerage and allied services (INR 34.3 crore), income from tech platform charges (INR 12.7 crore), and other operational revenue (INR 5.71 crore). However, the company’s expenditure also increased, resulting in a total expenditure of INR 155.66 crore. On a unit level, Groww earned Re 1 of operating revenue by spending INR 2.95 during FY21.
-
While Groww has witnessed a respectable increase in earnings, it still trails behind competitors like Zerodha (INR 1,094 crore) and Upstox (INR 148 crore) in terms of earnings. In FY20, Groww made INR 1 crore, while ET Money made INR 2.24 crore.
-
Groww achieved unicorn status in April 2021 after closing an $83 million Series D funding round led by Tiger Global Management.
-
Groww, a trusted platform with over 30 million users, has expanded its product suite by launching Intraday Trading and ETFs. These offerings aim to provide diverse investment options to millennial investors with varying objectives. The introduction of intraday trading on 350+ stocks and select ETFs enables investors to short sell, place stop-loss orders, and track price movements conveniently.
-
ETFs, as passive investment instruments, cater to users inclined towards this asset class. Groww allows investors to access information about ETFs, such as expense ratio, fund manager details, scheme objectives, and real-time price tracking of underlying securities.
-
With stock trading gaining popularity, especially among young millennials, Groww launched Intraday Trading at an opportune time. The number of demat accounts with CDSL crossed 25 million, representing a 25% increase, and mobile trades tripled since March 2020, as reported by BSE’s trading data.
-
Groww plans to educate its investors about intra-day trading and ETFs through a series of learning modules. The platform also intends to add more features to enhance the investing experience.
-
In addition to stocks investing, Groww is exploring the neobanking segment and lending. It aims to become a holistic one-stop solution for banking and investment, providing credit lines based on user transaction histories.
-
Groww’s “Ab India Karega Invest” initiative aims to bridge the knowledge gap among investors, particularly in tier-II and tier-III cities. The company conducts conferences in various cities to simplify and make investing accessible. The overwhelming response to the initiative has led to its extension throughout India, fostering local investor communities.
-
Lalit Keshre, Co-founder and CEO of Groww, emphasizes the company’s mission to make investing accessible to millions of people in India, particularly beyond metros, by prioritizing customer experience and engaging with aspiring investors across the country.
Groww - Funding and Investors
Groww has raised approximately $393 million through seven funding rounds to date. The most recent funding round, Series E, took place on October 24, 2021, and raised approximately $251 million. Iconiq Growth led this funding round.
Here’s a glimpse of the funding rounds of Groww:
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| October 24, 2021 | Series E | $251M | Iconiq Growth |
| Apr 7, 2021 | Series D | $83M | Tiger Global Management |
| Sep 10, 2020 | Series C | $30M | Y Combinator Continuity Fund |
| Sep 18, 2019 | Series B | $21.4M | Ribbit Capital |
| Jan 23, 2019 | Series A | – | – |
| Jan 23, 2019 | Series A | $6.2M | Sequoia Capital India |
| Jul 9, 2018 | Seed Round | $1.6M | – |
Groww - Acquisitions
To date, Groww has acquired only one other mutual fund business, which is Indiabulls AMC. Groww acquired Indiabulls Mutual Fund for INR 175 crore, which includes cash equivalents of INR 100 crore. Groww will be one of the first fintech firms to join the 37 trillion dollar asset management market as a result of this purchase.
Groww - Advisors and Mentors
In an exciting development, Groww, the Indian investment platform, has secured an investment and advisory role from Satya Nadella, the CEO of one of the world’s most valuable companies, Microsoft. Lalit Keshre, Co-founder and CEO of Groww, expressed his enthusiasm about this partnership by promptly sharing the news on LinkedIn.
Groww - Awards
-
BSE Star MF award for Karnataka’s 2nd best performer in the RFD category in 2017-18.
-
3rd place in the BSE Star MF Fintech – Highest Transactions competition in 2017-2018.
-
BSE Star MF Fintech – Highest Transactions in 2018-19: 1st position.
-
ET Startup Awards 2020: Groww was named the winner in the ‘Best Startup of the Year’ category at the Economic Times Startup Awards in 2020.
-
Financial Express Innovation Awards: Groww was recognized at the Financial Express Innovation Awards for its innovative approach in the fintech industry.
-
Google Play Store Awards: Groww was featured in the Google Play Store Awards for its exceptional user experience and customer satisfaction.
-
LinkedIn Top Startups India: Groww was listed among the LinkedIn Top Startups in India, which highlights promising startups with significant growth potential.
These awards highlight Groww’s achievements in the financial and investment sector. It’s worth noting that Groww’s success in these competitions demonstrates its commitment to providing efficient and reliable investment services.
Groww - Competitors
Groww in the Indian investment and stockbroking industry. Here is a brief overview of each competitor:
-
Upstox: Upstox is a popular online discount brokerage firm that offers trading and investment services in equities, commodities, derivatives, and currencies.
-
Zerodha: Zerodha is one of the largest retail stockbrokers in India, known for its low-cost brokerage services. They offer a wide range of investment options, including equities, commodities, mutual funds, and more.
-
IIFL (India Infoline Limited): IIFL is a diversified financial services company that provides a range of services, including broking, wealth management, loans, and insurance. They have a strong presence in the Indian market.
-
Finvasia: Finvasia is a technology-driven financial services company that offers low-cost brokerage services. They provide online trading and investment solutions across various segments, including equities, derivatives, commodities, and currencies.
-
Angel Broking: Angel Broking is one of the largest full-service retail stockbroking firms in India. They offer a wide range of investment and trading services, including equities, commodities, derivatives, mutual funds, and more.
-
SAS Online: SAS Online is a discount brokerage firm that focuses on providing cost-effective trading and investment solutions. They offer trading services in equities, commodities, derivatives, and currencies.
-
Sharekhan: Sharekhan is a leading full-service retail brokerage firm in India. They provide a comprehensive range of investment and trading services, including equities, derivatives, commodities, mutual funds, and more.
-
Edelweiss: Edelweiss is a diversified financial services company that offers various services, including investment banking, asset management, insurance, and broking. They have a strong presence in the Indian market.
-
Karvy Stock Broking: Karvy Stock Broking is a prominent stockbroking and financial services company in India. They provide a wide range of services, including broking, research, wealth management, and more.
These competitors contribute to the vibrant landscape of investment and trading platforms in India, providing investors with a range of options to choose from based on their preferences and requirements.
Groww - Challenges Faced
The investment industry in India has experienced significant growth, with a pace of 12.5% per year over the last decade, which is more than double the world average growth rate. However, despite this growth, India’s mutual fund asset base as a percentage of GDP is relatively low at 11%, compared to the global average of 62% this year. This indicates that there is ample room for expansion in the Indian market.
One of the challenges in attracting new investors, particularly younger and first-time investors, is the perceived complexity of the investment process and the need for continuous access to advisors for guidance. Additionally, concerns about potential risks and hazards associated with investing can create hesitancy among these individuals.
To address these concerns and educate potential investors, digital services such as PhonePe, GPay, Paytm, and others have played a significant role. These platforms have simplified the user interface and incorporated interactive instructional content, making it easier for individuals to understand and navigate the investment landscape.
Groww, as a digital investment platform, has embraced this approach by presenting a wide range of investment products to potential investors. They provide clear information on the corresponding risk levels and historical performance of these products. Additionally, Groww offers users a comprehensive summary of mutual fund facts, helping to further educate and empower investors.
By combining user-friendly interfaces with educational resources, platforms like Groww are helping to demystify investing and make it more accessible to a broader audience, including younger and first-time investors.
Groww - Future Plans
In the coming months, Groww has plans to launch several new offerings, including deposits, US equities, sovereign gold bonds, Futures & Options, and other derivative products. The company’s goal is to become an inclusive internet finance company, providing a wide range of investment products to Indian retail investors.
Since its inception, Groww has placed a strong emphasis on financial education. The company believes in offering the best user experience, transparency, and simplicity to its customers. While Groww cannot provide direct advice on buying or selling investments, it aims to equip customers with the right information through its educational initiatives.
Over the next two years, Groww has outlined its intention to launch various financial education projects specifically targeting millennials. The company aims to contribute to the development of the financial services sector in India. Notably, Groww has experienced significant growth, with approximately 7 million customers joining between September 2020 and April 2021. Around 60% of these customers are from Tier 2 cities and beyond. As Groww moves forward, it plans to continue expanding its presence in Tier 2 and Tier 3 cities, making investment opportunities more accessible to a wider audience.
Groww - FAQ's
Q: What is Groww?
A: Groww is an Indian investment platform that allows users to invest in a variety of financial instruments such as mutual funds, stocks, digital gold, and more. It provides a user-friendly interface and aims to simplify the investment process for retail investors.
Q: How does Groww work?
A: Groww allows users to create an account, complete their KYC (Know Your Customer) process, and start investing. Users can browse and choose from a wide range of investment options available on the platform. Groww offers direct mutual funds, which means investors can invest in mutual funds without paying any commissions to intermediaries.
Q: What types of investments can I make on Groww?
A: Groww offers various investment options, including mutual funds, stocks, exchange-traded funds (ETFs), initial public offerings (IPOs), digital gold, and more. Users can explore and invest in these instruments based on their financial goals and risk preferences.
Q: Is Groww safe and secure?
A: Groww takes the security of its users’ investments and personal information seriously. It uses industry-standard encryption and security measures to protect user data. Additionally, Groww acts as a technology platform and does not hold users’ funds directly. Investments made through Groww are held by the respective asset management companies or depositories, ensuring an added layer of security.
Q: Can I use Groww for free?
A: Yes, using Groww is free of charge. There are no account opening charges or transaction fees for investing in mutual funds on the platform. However, certain services or features may have associated costs, such as advisory services or premium subscriptions. It’s advisable to check the specific terms and conditions related to any premium services offered by Groww.
Q: Is Groww available for both Android and iOS?
A: Yes, Groww is available as a mobile application for both Android and iOS devices. Users can download the app from the respective app stores and access their investment accounts on the go.
Q: Can I switch my existing mutual fund investments to Groww?
A: Yes, Groww provides a feature called “Switch” that allows users to transfer their existing mutual fund investments from other platforms or distributors to Groww. The process involves submitting the necessary details and documents to initiate the switch.
Please note that the above information is based on the knowledge available up until September 2021. It is recommended to visit the official Groww website or contact Groww directly for the most up-to-date and accurate information regarding their services and FAQs.
