Published Date: Oct 25, 2021 Groww’s investment, led by ICONIQ Growth, to help widen its reach in the market. Here is the official announcement.
Updated Date: May 22, 2023
Groww, one of the largest fintech platforms, has raised series E funding of $251 million at a valuation of $3 billion on Oct 24, 2021. The investment was led by ICONIQ Growth along with investors including Alkeon, Lone Pine Capital and Steadfast.
Groww’s existing investors – Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners, were also significant participants in the round.
The emerging fintech platform, Groww, has plans to invest its capital in expanding its business operations to reach to the under-penetrated geographies by strengthening its team and scaling up its infrastructure. It also plans to continue making significant investments in improving the accessibility of its financial services to the people of India. And educate them on the same.
Lalit Keshre, CEO and Co-Founder of Groww, said, “We will continue working hard to build an iconic and trusted brand out of India. Over the last five years, we have built a product that customers love and have lowered the barriers to investing across India. We are making a difference in the lives of millions of Indians by democratizing access. And it seems the journey has just begun with such a huge opportunity ahead of us.”
Speaking on the development, Yoonkee Sull, partner at ICONIQ Growth said “Groww has been helping transform the way India invests by building a platform that exemplifies simplicity, trust, and constant innovation”
He further commented that the financial services market in India is already large, growing rapidly, and ripe for disruption. “During the last couple of years, Groww has demonstrated that they are ready to seize that opportunity through strong accelerating momentum predicated on the strength of technology. Driven by an exceptional product-oriented team, Groww is already amongst the leading investment platforms in India, showcasing strong unit economics and customer cohorts’ ‘ he added.
Groww, started in 2016, offers investing in direct Mutual Funds, Stocks, ETFs and IPO for India’s growing retail investors. It enables retail investors to access financial products and services through its web and mobile app on both iOS and Android.
In April 2021, the company had raised $83 million as series D capital led by Tiger Global.
Groww is one of the easiest digital DIY tech-driven platforms, founded with a mission to make investing accessible and transparent for all. Groww already established a strong presence in mutual fund distribution and its reach is improving every day. At present, the platform has over 20 million users. While Groww continues to increase its user base across all cities and regions, nearly 70% of users are from Tier 2 and Tier 3 cities.
Working towards building the most customer-focused tech company for financial services in India, Groww will continue to add more financial products and services to its platform.
As an enthusiast and expert in the fintech industry, particularly in the realm of investment platforms, I bring a wealth of knowledge and experience to the table. Over the years, I have closely followed the developments and trends in this dynamic sector, keeping a keen eye on key players, funding rounds, and strategic moves that shape the landscape. My understanding is not just theoretical; I have actively engaged with the subject matter, staying informed about the latest news, market dynamics, and the intricacies of financial technology.
Let's dive into the information provided in the article about Groww's series E funding round, led by ICONIQ Growth:
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Investment Details:
- Amount and Valuation: Groww secured a substantial series E funding of $251 million at a valuation of $3 billion on October 24, 2021.
- Lead Investor: ICONIQ Growth spearheaded the investment, indicating a high level of confidence from a prominent player in the investment landscape.
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Investors Involved:
- Key Participants: Alongside ICONIQ Growth, other notable investors included Alkeon, Lone Pine Capital, and Steadfast.
- Existing Investors: Groww's existing backers, such as Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners, played significant roles in the funding round.
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Utilization of Capital:
- Business Expansion: Groww outlined plans to utilize the capital to expand its business operations, particularly targeting under-penetrated geographies.
- Team Strengthening: The funds are earmarked for strengthening the team, reflecting a strategic focus on human capital.
- Infrastructure Scaling: Groww aims to scale up its infrastructure to support the growing demands of its expanding user base.
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Strategic Vision:
- Accessibility and Education: Groww is committed to improving the accessibility of its financial services in India. The company also emphasizes the importance of educating users about financial products.
- Brand Building: Lalit Keshre, the CEO and Co-Founder, expressed the commitment to building an iconic and trusted brand in India. The goal is to make a difference in the lives of millions by democratizing access to investments.
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Endorsem*nt from ICONIQ Growth:
- Transformative Platform: Yoonkee Sull, partner at ICONIQ Growth, commended Groww for transforming the way India invests. He highlighted key attributes such as simplicity, trust, and constant innovation.
- Market Disruption: Sull sees the financial services market in India as ripe for disruption, with Groww positioned to seize the opportunity due to its technological strength and accelerating momentum.
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Groww's Background and Services:
- Founding and Mission: Established in 2016, Groww has a mission to make investing accessible and transparent for all.
- Product Range: The platform enables investing in direct Mutual Funds, Stocks, ETFs, and IPOs for India's retail investors.
- User Base and Reach: As of the provided information, Groww boasts over 20 million users, with a substantial user base from Tier 2 and Tier 3 cities.
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Previous Funding Rounds:
- Series D Funding: In April 2021, Groww had raised $83 million in series D capital, led by Tiger Global.
In summary, Groww's series E funding round signifies a significant milestone for the fintech platform, with a focus on expansion, team growth, and infrastructure scaling. The endorsem*nt from key investors and the strategic vision outlined by the CEO reinforce Groww's position as a leading investment platform in India's dynamic financial services market.
