Groww Success Story: From Startup to India’s Leading Investment Platform

The investment landscape in India has undergone a dramatic transformation over the past decade. Gone are the days of endless paperwork, multiple bank visits, long queues, and application processing that stretched for days. Add to that a lack of financial literacy and widespread mis-selling by agents, and investing was nothing short of a nightmare for the average Indian.

Today, all you need is a bank account, some disposable income, and a smartphone to begin your investment journey. While many new investors are exploring mutual funds and equities, a significant portion of India’s population remained investment-averse—until Groww entered the scene.

Groww has emerged as a game-changer in India’s fintech ecosystem, democratizing investment through its user-friendly platform that offers stockbroking and direct mutual funds. This is the success story of how four former Flipkart employees transformed the investment industry and made wealth creation accessible to millions of Indians.

About Groww: Simplifying Investment for Everyone

Groww is a web-based investment platform that allows users to invest in mutual funds and equities directly. Founded in April 2016, the company has positioned itself as a creator of a mutual fund direct access platform with a mission to make investing simple, accessible, transparent, and fully paperless.

Company Snapshot:

• Headquarters: Bangalore, Karnataka, India
• Founded: April 2016
• Founders: Lalit Keshre (CEO), Harsh Jain, Neeraj Singh, and Ishan Bansal
• Owner: Nextbillion Technology
• Valuation: Approximately less than $2 billion (November 2024)
• Website: www.groww.com

With over 1.5 crore (15 million) registered users—most under the age of 40 and preferring mobile platforms—Groww has become one of India’s most trusted investment platforms. The platform offers access to over 5,000 mutual funds through its website and mobile apps available on both iOS and Android.

The Visionaries Behind Groww: Meet the Founders

Groww was founded by four talented former Flipkart employees who shared a common vision: to make investment accessible to young Indians by simplifying the entire process.

Lalit Keshre – Co-founder and CEO

Lalit Keshre, the driving force behind Groww, holds a BTech in Electrical Engineering (Microelectronics) from IIT Bombay. Before founding Groww, he established Eduflix and spent nearly three years at Flipkart in the Product department. His technical expertise and product vision have been instrumental in shaping Groww’s user-centric platform.

Harsh Jain – Co-founder and COO

Harsh Jain completed his Master of Technology in Information and Communication Technology from IIT Delhi and holds an MBA in Product Management and Marketing Technology from UCLA Anderson School of Management. His operational excellence and strategic thinking have helped Groww scale rapidly across India.

Ishan Bansal – Co-founder

Ishan Bansal brings a unique blend of technical and financial expertise to Groww. A BTech graduate in Mechanical Engineering from BITS Pilani, he’s also a CFA Charter Holder and holds an MBA in Finance from XLRI Jamshedpur. His career journey through ICICI Securities, Naspers Limited, and Flipkart’s Corporate Development team gave him deep insights into the financial services industry.

Neeraj Singh – Co-founder and CTO

Neeraj Singh, the technical architect of Groww, holds a Bachelor’s degree in Information Technology from ITM University, Gwalior, and a Post Graduate Diploma in Advanced Computing from C-DAC. His experience as a software engineer at JDA Software, Ivy Computech, and Flipkart’s SDE department provided the technical foundation for building Groww’s robust platform.

The Groww Startup Story: Identifying the Next Big Opportunity

During their tenure at Flipkart, the founding team witnessed firsthand the e-commerce revolution sweeping across India. This boom signaled two critical developments: rising average incomes and increasing technological adoption among Indians. The founders realized that people now had discretionary income and would need guidance on investing it wisely.

When the team began investigating the Indian financial services landscape, they spent considerable time understanding the market and identifying users’ pain points. Key challenges included:

• Perceived complexity of financial products
• Lack of accessible, unbiased information
• Need for constant advisor intervention
• Fear of market risks
• Cumbersome paperwork and processes

The founders conducted numerous tests to determine the optimal user experience. They understood that users’ hard-earned money was at stake, necessitating a safe, secure, and trustworthy solution—which required significant development time.

Groww launched in 2016 as a direct mutual fund distribution platform and quickly became one of India’s most popular mutual fund investing platforms. Responding to customer demand, Groww added equities in early 2020, followed by digital gold, ETFs, intraday trading, and IPOs in rapid succession.

The Market Opportunity: In India, approximately 200 million people have disposable income, but only about 20 million actively invest. Groww’s goal was to bridge this gap by providing the information, resources, and customer engagement needed to get people started with investing quickly and easily.

Mission and Vision: Empowering Investors

Groww’s mission is simple yet powerful: to provide investors with the greatest experience possible when managing their wealth.

As Co-founder and CEO Lalit Keshre stated: “Over the last few years, we have made investing in mutual funds and stocks simple and transparent for millions of investors in India. If we look at the opportunity that lies ahead, it still feels like Day 1. We started our journey with small steps writing blogs and making videos to educate people about investing. Our wealth as a nation will keep growing, and our mission is to provide the best experience for investors to manage their wealth.”

Brand Identity: Name, Logo, and Tagline

The Groww logo features a circular design in two colors—green and blue—depicting an increasing graph, symbolizing growth and upward trajectory in investments.

The company’s tagline, “There’s just one right way,” reflects its core philosophy of simplifying the investment process. Groww enables investors to choose from various mutual funds and invest in schemes with different market capitalizations—all through a straightforward, transparent interface.

Product Portfolio: A Complete Investment Ecosystem

Groww has expanded from a mutual fund platform to a comprehensive investment ecosystem offering:

1. Stocks – Direct equity investments with low brokerage fees
2. Mutual Funds – Over 5,000 direct mutual funds with zero commission
3. Digital Gold – Easy gold investments starting from small amounts
4. US Stocks – Access to international markets
5. ETFs (Exchange-Traded Funds) – Passive investment options
6. IPOs – Direct participation in initial public offerings
7. Intraday Trading – Day trading on 350+ stocks
8. Futures & Options – Derivatives trading
9. Fixed Deposits – Safe investment alternatives
10. Groww Pay – UPI-based payment solution for peer-to-peer transactions

The Groww Business Model: How Does It Make Money?

Groww operates as a commission-free platform for mutual funds while generating revenue through several streams:

Revenue Sources:

1. Brokerage Fees: Flat-fee brokerage on equity and F&O trades
2. Regulatory Charges: STT (Securities Transaction Tax), stamp duty, exchange transaction charges, and DP (Depository Participant) charges
3. US Stocks: Forex conversion fees and exchange fees
4. Interest on Deposits: Earnings from user funds held in accounts
5. Future Revenue Streams: Potential subscription fees for premium offerings and advisory services

The Mutual Fund Model:

For mutual funds, Groww receives a small fee from the mutual fund company—not from customers. The platform offers direct mutual fund investments, eliminating distributor commissions. This approach:

• Provides customers with 1.5% additional returns through direct plans
• Eliminates hidden fees and commissions
• Ensures complete transparency in pricing

Cost Structure:

Groww charges:

• Zero account opening fees
• Zero monthly maintenance charges
• Zero transaction charges for mutual funds
• Zero redemption charges
• Competitive flat brokerage for equity trading

The company recently moved its parent entity from the US back to India, resulting in a reduced fair market valuation of under $2 billion but positioning itself better for the Indian market.

Revenue and Growth: Exponential Expansion

Financial Performance:

Groww has demonstrated remarkable revenue growth:

• FY20: INR 55.44 crore
• FY21: INR 283.5 crore (411% growth)
• FY22: INR 351 crore (24% growth)
• FY23: INR 1,435 crore (309% growth)
• FY24: INR 3,145 crore (119% growth)

Despite recording a net loss of INR 805 crore in FY24 due to a one-time tax expense from its domicile shift, Groww achieved operational profitability of INR 535 crore—up from INR 458 crore in FY23.

User Growth Metrics:

• 30+ million registered users
• 6.63 million active clients (September 2023)
• Surpassed Zerodha to become India’s largest broker by active clients
• 60% of users come from tier-2 and tier-3 cities
• 4.5+ lakh Demat accounts opened within months of launching stock investing

Valuation Journey:

Groww achieved a remarkable 10X valuation jump—from $250-300 million to $3 billion—in just over a year, showcasing investor confidence in its business model and growth trajectory.

Key Milestones and Product Launches

Launch of Intraday Trading and ETFs

When stock trading gained unprecedented popularity among Indians, especially millennials, Groww launched intraday trading and ETFs. CDSL reported that demat accounts crossed 25 million with a 25% increase against pre-lockdown numbers, while mobile trades tripled since March 2020.

Features introduced:

• Intraday trading on 350+ stocks
• Short-selling capabilities
• Stop-loss orders
• Candlestick charts for price tracking
• Complete ETF information including expense ratios and fund manager details

Groww Pay Launch

Groww enhanced its platform by introducing the ‘Pay’ feature, enabling users to:

• Engage in peer-to-peer UPI transactions
• Make payments to merchants by scanning QR codes
• Conduct seamless digital payments

“Ab India Karega Invest” Initiative

Recognizing that 60% of users come from tier-2 and tier-3 cities, Groww launched a unique financial education initiative. The company conducted conferences in 52 cities over 52 weeks to explain investment fundamentals and foster local investor communities.

Pilot campaigns in Lucknow, Jaipur, and Patna received overwhelming responses, leading to PAN-India expansion.

SEBI Approval for Mutual Fund Business

Groww received approval from SEBI for the Groww Nifty Total Market Index Fund after acquiring Indiabulls AMC’s mutual fund business. This strategic move positioned Groww to enter the 37 trillion-dollar asset management market as one of the first fintech firms.

RBI License for Online Payments

On April 29, 2024, Groww secured an online payment aggregator license from the RBI, allowing it to conduct e-commerce transactions through Groww Pay. This marked a significant expansion into the credit and payments space.

Funding Journey: Backing from Top Investors

Groww has raised approximately $418 million across 7 funding rounds:

Notable Advisors and Mentors

Groww secured a prestigious addition to its advisory board: Satya Nadella, CEO of Microsoft (not Google as mentioned in the source), as an investor and advisor. This partnership provides strategic guidance and validates Groww’s vision for transforming financial services in India.

Strategic Acquisitions

Indiabulls AMC Acquisition

Date: May 11, 2021
Amount: INR 175 crore ($22.99 million), including cash equivalents of INR 100 crore

This acquisition enabled Groww to enter the mutual fund management business, complementing its distribution platform. Indiabulls AMC offered various mutual funds, tax-saving investments, SIP options, and calculators.

Digio Investment

Date: January 2, 2023

Groww acquired a minority stake in Digio, a SaaS startup, as part of its strategic investment to enhance digital capabilities and potentially streamline documentation processes.

Recognition and Awards

Groww’s excellence has been recognized through multiple awards:

• 2017-18: BSE Star MF award for Karnataka’s 2nd best performer in the RFD category
• 2017-18: 3rd place in BSE Star MF Fintech – Highest Transactions
• 2018-19: 1st position in BSE Star MF Fintech – Highest Transactions

Competitive Landscape

Groww operates in a highly competitive market with several established players:

Primary Competitors:

1. Zerodha – India’s largest discount broker (until Groww overtook it in 2023)
2. Upstox – Valued at around $3.4 billion
3. Angel Broking – Traditional broker with higher margins
4. 5paisa – Offers INR 10 per order flat brokerage
5. IIFL
6. Finvasia
7. SAS Online
8. Sharekhan
9. Edelweiss
10. Karvy Stock Broking

Competitive Advantages:

• User Experience: Simplified, intuitive interface
• Zero Commission: No charges for mutual fund investments
• Educational Content: E-books, resources, blogs, and videos
• Paperless Process: Completely digital onboarding
• Direct Plans: Additional 1.5% returns through direct mutual funds
• Comprehensive Platform: Stocks, mutual funds, gold, IPOs, and more in one place

By September 2023, Groww had 6.63 million active clients—approximately 150,000 (2.3%) more than Zerodha—breaking the latter’s lengthy reign at the top.

Challenges Faced and Overcome

Market Penetration Challenges

Despite India’s mutual fund industry growing at 12.5% annually over the past decade (double the global rate), penetration remains low:

• India’s mutual fund asset base: 11% of GDP
• Global average: 62% of GDP
• Only 48% of older millennials (29-37) participate in equities
• Merely 4% of younger generation (22-28) invest in stocks

User Apprehension

Young and first-time investors were hesitant due to:

• Perceived complexity of financial products
• Need for constant advisor guidance
• Fear of market risks
• Lack of trustworthy information

Groww’s Solutions

The platform addressed these challenges by:

1. Education-First Approach: Creating blogs, videos, and learning modules
2. Transparent Information: Displaying risk levels and historical performance
3. Simple Interface: Designing an intuitive, user-friendly app
4. Building Trust: Providing comprehensive mutual fund information
5. Customer Support: Offering guidance while maintaining simplicity

Future Plans: What’s Next for Groww?

IPO Plans

During an event in New Delhi in Nov 2025, CEO Lalit Keshre hinted that Groww’s IPO may materialize “somewhere down the line,” though he refrained from providing a specific timeline. With India’s IPO market thriving, Groww is well-positioned to leverage this momentum when the time is right.

Neobanking Entry

Groww is exploring entry into the neobanking segment with a new platform expected to launch soon. This move aligns with the company’s vision to become a one-stop solution for banking and investment, making the platform more holistic for users.

Lending Business

Groww is in final stages of launching a lending vertical, which will:

• Offer credit lines to select users
• Base lending decisions on transaction histories and app usage
• Potentially multiply revenue streams significantly

Expansion Plans

• Geographic Expansion: Deeper penetration in tier-2 and tier-3 cities
• Product Innovation: Continuous addition of investment products
• Educational Initiatives: Expanding financial literacy programs
• International Markets: Enhanced US stocks offering

Key Takeaways: Lessons from Groww’s Success

1. Simplification is Key

Groww succeeded by removing complexity from investing. Their focus on making the process simple, transparent, and paperless resonated with millennials and first-time investors.

2. Education Drives Adoption

By investing heavily in educational content—blogs, videos, webinars, and city conferences—Groww built trust and helped users make informed decisions.

3. Technology as an Enabler

Leveraging technology to reach the right audience reduced operating costs while improving user experience. Mobile-first approach captured the smartphone generation.

4. Customer-First Approach

Zero commission on mutual funds and transparent pricing demonstrated genuine commitment to customer welfare over short-term profits.

5. Strategic Timing

Launching when smartphone penetration and digital payments were accelerating gave Groww the perfect platform for growth.

6. Building for Bharat

Recognizing that 60% of users come from smaller cities, Groww focused on tier-2 and tier-3 markets—an often-overlooked segment with massive potential.

Conclusion: Transforming India’s Investment Landscape

From its humble beginnings in 2016 to becoming India’s largest broker by active clients, Groww’s journey exemplifies how technology and customer-centric thinking can democratize financial services. The platform has successfully:

• Made investing accessible to 30+ million Indians
• Eliminated complexity through intuitive design
• Provided transparent, commission-free investment options
• Educated millions about financial planning
• Expanded beyond metros to reach Bharat

With plans to enter neobanking, lending, and potentially go public, Groww continues to evolve as a comprehensive financial services platform. As Co-founder Lalit Keshre aptly stated, despite tremendous progress, it still feels like “Day 1” for Groww.

The success story of Groww is not just about building a profitable business—it’s about transforming how an entire generation approaches wealth creation and financial planning. As India’s economy grows and disposable incomes rise, platforms like Groww will play a crucial role in ensuring that financial prosperity is accessible to all, not just a privileged few.

For aspiring entrepreneurs, Groww’s journey offers valuable lessons: identify genuine pain points, leverage technology meaningfully, prioritize user experience, educate your audience, and most importantly, stay committed to your mission even when immediate profits seem distant. After all, building trust and solving real problems eventually leads to sustainable success.