Groww - Making Investing Simple

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Groww.

Investing a decade ago entailed a lot of paperwork, many bank visits, long lines, and application processing that may take days. This would have been unthinkable just a few years ago. When you add in a dearth of knowledge about financial products and widespread misselling by agents, the experience becomes nothing short of a nightmare.

These days, all you basically need is a bank account, some disposable income, and a smartphone to begin investing, increasing, and managing your wealth. New investors can invest in mutual funds, equities, and other plans using investment platforms, which are simple to use. When it comes to investing, India's investment-averse citizens are now stepping out. Groww, for example, has used technology and content to help investors overcome barriers to investment.

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	2016
Website	www.groww.com

Groww - Latest News
About Groww and How it Works?
Groww - Founder and History
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 - Awards
Groww - Competitors
Groww - Challenges Faced
Groww - Future Plans
Groww - FAQs

Groww - Latest News

As of May 11, 2021, Groww claims that Sebi's recent adjustment in fintech sponsorship requirements has allowed it to access the asset management market.

Groww, a fast-growing technology-oriented investment platform, has agreed to buy Indiabulls Asset Management and Trustee Company for INR 175 Crore from Indiabulls Housing Finance (including cash equivalents of INR 100 crore). Groww will be one of the first fintech firms to join the INR 32 trillion asset management market as a result of this purchase.

About Groww and How it Works?

Groww is a web-based investment platform that allows users to invest in mutual funds and equities directly. The company is a creator of a mutual fund direct access platform. The company's technology makes investing simple, accessible, transparent, and fully paperless, allowing customers to invest in mutual funds without any difficulties.

Groww users can invest in mutual funds through SIPs and equity-linked savings. According to the company, it has over one million registered users, the majority of them are under the age of 40 and prefer to use their phones. It offers over 5,000 mutual funds that may be invested in straight through its app, which is available on iOS, Android, and the web.

They feature a straightforward pricing structure that includes cheap trading fees. You can invest in a mutual fund for free with no hidden fees. Groww does not charge an account opening fee or a monthly maintenance cost. If you use a direct mutual fund platform, you can earn an additional 1.5 percent.

Groww offers E-books, Resources, and Blogs that provide stock market essentials and updates to assist investors to make better decisions. One can open a paperless account immediately very easily. If you want to participate in the primary market, you can submit an online IPO application. A Brokerage Calculator is included in the software.

Groww - Founder and History

Groww, which was founded in 2016 by 4 former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, aim to make investment more accessible to young people by simplifying the process. The DIY (Do It Yourself) model, in which individual investors establish and manage their own investment portfolios, is preferred by most millennials.

They witnessed the change in the e-commerce market during their time at Flipkart and realized that investment is the next big opportunity. The e-commerce boom signaled an increase in average income and technology savvy, and it was at this point that the founders realized that individuals indeed have discretionary cash and will need assistance in putting it to good use.

Groww is a Bangalore-based brokerage firm that offers online discount brokerage services for a single charge. Groww can help you invest in stocks, IPOs, and mutual funds directly. Nextbillion Technology Private Limited, a SEBI-registered brokerage, is known as Groww. NSE and BSE both have NTPL as a member.

Groww began as a platform for investing in direct mutual funds. Groww, on the other hand, expanded its product offering in the 2020s to incorporate equity trading. The creators believe that the process of investing in financial products in India is overly complex and opaque, based on their own experience and that of their friends and acquaintances. Their main goal was to make the process more transparent and understandable for investors.

In India, there are about 200 million people with disposable income, but only about 20 million actively invest. Groww' s goal was to provide consumers with the information, resources, and customer engagement they needed to get started investing as quickly as possible.

When the founding team started investigating Indian financial options for interested consumers, they spent a lot of time learning about the market and identifying the users' basic pain concerns. They have to conduct numerous tests in order to determine the best user experience. Furthermore, because the user's hard-earned money was on the line, they needed to deliver a safe and secure solution, which required some time to develop.

Groww began as a direct mutual fund distribution platform in 2016 and has since grown to become one of the country's most popular mutual fund investing platforms. Groww added equities in the early part of 2020 in response to customer demand, and the following year launched digital gold, ETFs, intraday trading, and IPOs in rapid succession.

Groww - Mission and Vision

The company's mission is to give investors the greatest experience possible when it comes to managing their money.

Lalit Keshre, Co-founder and CEO, Groww, said – “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. We are happy to partner with investors who believe in 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.

Groww Logo

'There's just one right way,' says the company's tagline. Their main goal 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

List of products include :

Stocks
Mutual Funds
Digital Gold
US stocks

Groww - Business Model

Groww charges a tiny fee, however it is paid by the mutual fund firm, not by the client. They profit on the funds they sell, but it's a complicated process.

To begin, there are two types of mutual fund investments: regular and direct. In ordinary mode, a distributor appears, and you must pay the distributor a commission. The commission is calculated in such a way that it compensates you for your investment and profits.

Apps like Groww, on the other hand, give consumers with a direct investing opportunity by combining different funds and companies into a single platform, giving them more possibilities.

For a fintech company like Groww, the first thing to keep in mind is to expand the customer base. Groww leverages technology to reach the proper target audience, which lowers its operating costs. People rarely switch between these types of applications. As a result, once the correct customer base has been established, they are likely to stick with you for the long haul.

Groww allows users to invest in mutual funds and equities from anywhere in the world, thanks to its high level of technology. With just a few mouse clicks, you can become an owner of a specific stock or mutual fund.

Groww - Revenue and Growth

Groww, a five-year-old startup, is one of many that has piqued investor attention. The company's earnings increased by 4.7 times to little over INR 1 crore in FY20, up from INR 20.14 lakhs in FY19. Operating revenue increased by 3.25 times to INR 52.05 lakhs, with financial assets contributing additional INR 48.24 lakhs.

The Y Combinator-backed business has witnessed a respectable increase in earnings, but it still trails companies like Zerodha and Upstox, which have earnings of INR 1,094 crore and INR 148 crore, respectively. Groww made INR 1 crore while ET Money made INR 2.24 crore in total in FY20.

They are fast expanding, but the founders of Groww have taken the company to unicorn status. They recently received money and have been designated as a unicorn startup.

Groww - Funding and Investors

The Groww funding till date is as follows:

Date	Round	Amount	Lead Investors
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

Till date, Groww has acquired only one other mutual fund business, which is Indiabulls AMC.

Acquiree Name	About Acquiree	Date	Amount
Indiabulls AMC	Indiabulls AMC is a mutual fund company provides different types of mutual funds, tax saving investments, SIP investments, SIP calculators.	May 11, 2021	₹1.8B

Groww - Awards

2017-18: BSE Star MF award for Karnataka's 2nd best performer in the RFD category.
2017-2018: 3rd place in the BSE Star MF Fintech – Highest Transactions competition. 2017-2019
2018-19: BSE Star MF Fintech – Highest Transactions 2018-19: 1st position

Groww - Competitors

Top competitors of Groww are Upstox, Zerodha, Upstox, IIFL, Finvasia, Angel Broking, SAS Online, Sharekhan, Edelweiss, and Karvy Stock Broking.

Comparing Groww to its basic competitors :

Upstox- They offer nearly identical services and a similar brokerage framework
5pasia- They offer the same services as 5pasia, but their cost is different because they offer zero brokerage trading. 5paisa offers superior service and charges a reduced brokerage fee (INR.10 per order flat)
Flyers- In this situation, the services and pricing structure are the same as those of Zerodha. They do, however, give an API that is completely free.
Angel Broking offers similar services, but with a much bigger profit margin.

Groww - Challenges Faced

The industry has risen at a pace of 12.5 percent per year over the last ten years, which is more than double the world growth rate. However, India's mutual fund asset base as a percentage of GDP is only 11 percent, compared to the world average of 62 percent this year. Individual investor demographic data suggests that 48 percent of somewhat older millennials (aged 29-37) participate in equities, whereas only 4 percent of the young generation (aged 22-28) do so.

Because of the perceived complexity and the need to have advisors on hand at all times to navigate the dangers, as well as the dread of the hazards, young or first-time investors are hesitant to enter the market. The challenge, according to the founder, was to not only alleviate these concerns but also to educate them. That's where digital services like PhonePe, GPay, Paytm, and others have made a huge difference by combining a simple user interface with interactive instructional content.

Groww clearly displays a variety of goods to potential investors, together with the corresponding risk level and historic performance. It also provides consumers with a comprehensive summary of all mutual fund facts, which helps to educate them.

Groww - Future Plans

In the coming months, Groww will launch deposits, US equities, sovereign gold bonds, Futures & Options, and other derivative products. Groww has prioritized financial education material since the company's beginning.

“Our philosophy has been to create an internet finance company, based on best user experience, transparency, and simplicity, with the goal of offering every investment product out there for an Indian retail investor. Further, while we cannot advise a customer on what to buy or sell, we can definitely provide them with the right information through our educational initiatives," Keshre, chief executive and co-founder, said in an interview.

The company intends to launch a flurry of financial education projects geared at millennials and develop the financial services sector over the following two years. It signed up roughly 7 million customers between September 2020 and April 2021, with 60% of those in Tier 2 cities and beyond, according to the business.

Groww - FAQs

What does Groww do?

Groww is an online investment platform that allows users to invest in mutual funds and equities directly. The company is a creator of a mutual fund direct access platform.

How does Groww make money?

Groww charges a tiny fee, however it is paid by the mutual fund firm, not by the client.

Is Groww app Indian?

Yes, Groww is an Indian company.

Which companies do Groww compete with?