Groww’s Journey: Democratizing Investments in India

Wealth-making platform Groww in India is helping people to achieve unlimited success and richness with its latest newly made strategy of investing, and now all people are utilising its latest trending style of investing ideas. In this article here, we will encroach on the one and only India’s smart investing platform, Groww, including its different types of investing opinions and methods. 

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Here Groww’s mission to transform India’s investment habits includes several different investment aids in the Indian stock market, such as investing in mutual funds, stocks, initial public offerings, digital gold, and exchange-traded funds.

Today in India, all are aware of investing their money and storing wealth with the hope of getting a high amount of profit, and hence, here, the modern way of investment available with Groww’s trending investing options is the best to choose.

The company raised more than $142 million from investors, $113 million of which came from the past six months. Last month, it raised $83 million in a Series D fundraising led by Tiger Global, valuing it at $1.2 billion.

Groww’s Company Highlights

What is Groww? and how does it work to transform India’s investment

Groww is an online investment application that allows users to invest directly in mutual funds and equities. The company is the creator of a mutual fund direct-access platform. Groww’s technology to invest will now be simple, accessible, transparent, and entirely paperless, such that customers can invest in mutual funds without any hassles.

Invest in mutual funds through SIPs and equity-linked savings using Groww. It claims that it has over 1.5 crore registered users, of whom the majority are below 40 years of age and prefer to use their phones for everything. More than 5,000 mutual funds that an investor can invest in directly through its website and app, available on iOS and Android.

Its pricing model is very simple but is also applicable to low-cost trading charges. Invest in mutual funds with no hidden charges that you don’t pay. No account opening fees or monthly maintenance charges will be passed on to you by Groww. In addition to this, you too can gain an extra 1.5% under the direct mutual fund plan from Groww.

Groww has brought e-books, resources, and blogs that present stock market essentials and updates to aid better stock decisions by investors. One can open a paperless account immediately. To enter the primary market, the individual can submit an online IPO application. The software comes with a broking calculator.

Founders of Groww

Grow platform was founded by the four ex-employees of Flipkart, Lalit Kishore, Harsh Jain, Neeraj Singh, and Ishan Bansal, who had the vision to ease the process of investment in India and make it accessible for the younger generations. 

This platform was uniquely designed based on the DIY (Do It Yourself) module, using which the investors can establish their portfolio and manage it by themselves, which is the most preferred by most millennials.

Lalit Keshre

The co-founder and CEO of the renowned investment Groww Lalit Keshre was a BTech student in Electrical Engineering and Microelectronics at IIT Bombay. Keshre was in charge of the product and engineering of the IITiam systems. Immediately after graduation, Lalit founded Eduflix. He joined Flipkart, worked in the product department for a little less than 3 years, and then founded Groww in May 2016.

Harsh Jain

Harsh Jain is the co-founder and COO of Groww. He completed his B.Tech from IIT, Delhi, and then pursued his master’s in technology in information and communication technology. Jain has also done an MBA in Product Management and Marketing Technology from UCLA Anderson School of Management.

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Ishan Bansal

Ishan Bansal is one of the other co-founders of the company. Bansal is one of those people who have completed BTech in Mech from BITS, Pilani. He is also a charter holder from the CFA Institute. Bansal has an MBA in Finance from XLRI Jamshedpur. Ishan Bansal started his career at ICICI Securities. 

Then he moved to Naspers Limited as a manager. He joined Flipkart next, where he was part of Corporate Development. After this short vacation at Flipkart, Ishan headed out to co-found Groww.

Neeraj Singh

Neeraj Singh is that man who got the title under the Co-founders and CTO Groww. Neeraj holds a Bachelor’s in Information Technology from ITM University, Gwalior. He then opted for a Post-Graduate Diploma in Advanced Computing from C-DAC. 

Singh joined his first company, JDA Software, as a software engineer and later chose Ivy Computech as the company he started with as a senior software engineer. Eventually joined Flipkart under their SDE department and later decided to co-found Groww along with the other founders.

Groww’s Products

What are the types of products available in Groww? It is an interesting thing that also attracts more investors with different options of investing ideas. 

1. Mutual Funds

2- Stocks

3. Digital Gold

4- US Stocks

Business Model of Groww Platform

Groww functions as a commission-free platform charging flat-fee broking on equity and F&O trades along with regulatory charges like STT, stamp duty, exchange transaction charges, and DP charges. There are no account opening or maintenance fees for US stocks, but charges apply for forex conversion and exchange fees. Revenues can be generated through broking and interest on deposits for future subscriptions for premium indelicate offerings and advisory services.

Groww charges a very slight fee, but a mutual fund company pays it, not the customer. They earn the selling funds, and it’s too complex. 

First, mutual fund investments are of two types: regular and direct. In the case of regular mode, a distributor is attached, and you have to pay a commission to the distributor. The commission arrives in a way that compensates investment and profit. 

Apps like Groww, however, bring the possibilities of a wide net of alternatives together on a single platform, allowing consumers to invest directly. 

The first rule of thumb for any fintech company like Groww is to broaden its customer base. Groww uses technology to access the proper target audience, something that reduces the operating costs related to it. Because very few people switch places among these categories of applications, once the appropriate base is created, the customer will never go away. 

Thanks to the use of technology, Gradly now allows consumers all over the world to invest in mutual funds and stocks. With just a few mouse clicks, you can become an owner of a particular stock or mutual fund. 

Groww has moved its parent entity back to India from the US recently, resulting in a reduced fair market valuation of under $2 billion.

Revenue and Growth of Groww

Consolidate all on Groww, as it has wowed investors and grown phenomenally in the last few years. In FY20, the company’s income soared by 4.7 times to INR 1 crore, and operating revenues grew by 3.25 times to INR 52.05 lakh. By FY21, the company’s consolidated revenues stood at INR 30 crore, raked in by commissions, income from the tech platform, and support charges. 

It saw expenses at INR 155.66 crore but was still growing. By April 2021, it achieved unicorn status and announced an $83 million series D funding round to strengthen its hold as one of the rapidly growing financial tech leaders. Unfortunately, this company still lags behind the likes of Zerodha and Upstox when it comes to revenue.

Financials of Groww

Groww’s financial statistics are given here: 

Funding and Investors: Groww

Groww has received a large amount of funding after several rounds which has been listed with the help of the table.

This company has got around $418 million after 7 rounds of funding which are listed with other important facts like date, rounds, amount, and the lead investors.

Competitors of Groww

Here are many competitors of Groww, which are also acting as the major platforms for giving investment opportunities to investors. Some of the top competitors are listed below:

1. Zerodha
2. Upstox
3. Angel Broking
4. IIFL
5. Finvasia
6. SAS Online
7. Karvy Stock Broking
8. Edelweiss
9. Sharekhan

Future Plans of Groww

Let’s see what the founder of Groww says about the future of his platform: “Our philosophy has been to create an internet finance company based on the best user experience, transparency, and simplicity, to offer 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 provide them with the right information through our educational initiatives,” says Keshre.

Conclusion

Grow has broken the traditional way of investing in the stock market and eased the process of investing in the modern world, which helped young investors start their journey of investment. Let’s break the ancient way of searching for a great profit return when we have the best investment option, which is investing in the stock market.