Over 200 million people in India transact money digitally, but less than 30 million invest in mutual funds and stocks.
An Indian startup that is trying to change this figure into woo millennials announced another round of funding on Wednesday and became the new unicorn of the second largest internet market in the world.
Based in Bangalore To grow raised $ 83 million in its Series D funding round, which valued the Indian startup at over $ 1 billion, up from $ 250 million in a $ 30 million Series C in September of last year.
Tiger Global has led the new round and existing investors Sequoia Capital India, Ribbit Capital, YC Continuity and Propel Venture Partners have participated, said the four-year-old Indian startup, which has raised $ 142 million to date.
By the way, Groww is the eighth Indian startup to achieve unicorn status this year – and the fourth this week. Meesho social commerce turned a unicorn on Monday, financial technology company CRED Tuesday and earlier today, the online pharmacy company PharmEasy announcement a new round of funding that valued the company at around $ 1.5 billion.
Groww allows users to invest in mutual funds, including systematic investment planning (SIP) and savings linked to stocks, gold, as well as stocks, including those listed on the US stock exchanges . The app offers all funds currently available in India.
The startup has amassed more than 15 million registered users, two-thirds of which are first-time investors, Lalit Keshre, co-founder and CEO of Groww, told TechCrunch in an interview.
Keshre said the startup – co-founded by four former Flipkart executives, including Harsh Jain, Neeraj Singh and Ishan Bansal – will deploy the fresh funds to accelerate its growth and hire more talent. “We now have the fuel for longer term thinking and faster growth,” he said.
Over 60% of Groww users come from small towns in India and 60% of them have never made such investments before, Keshre said. The startup said it has held workshops in several small towns to educate people about the world of investing.
The coronavirus pandemic has also accelerated the startup’s growth as young people explore new hobbies. The startup competes with a handful of companies, including Zerodha, Paytm Money, Upstox, ET Money, Smallcase, and traditional businesses.
“We launched Groww almost five years ago to make investing accessible and transparent for everyone in India. We’ve made good progress, but it looks like we’re just getting started, ”Keshre said.