Bangalore-based online investment platform Groww announced on Monday, October 25 that it has crossed $3 billion in valuation after raising $251 million in its latest round of funding. The milestone comes just six months after the startup had entered the coveted Unicorn club when it crossed $1 billion in total valuation in April.
In a Series E round of funding led by US-based investment firm ICONIQ Growth, the startup tripled its valuation. Alkeon, Lone Pine Capital and Steadfast as well as existing investors Sequoia Capital India, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners participated in the new financing round.
With the raised funds, Groww is aiming to further its reach in the under-penetrated markets in India along with building its team and investing in tech infrastructure. The company will also invest in spreading awareness on financial matters.
“We will look at adding government bonds and other fixed-income products. We are also launching derivatives. Plus, there is a lot to build for our mutual funds vertical itself,” stated Groww’s Co-founder and CEO Lalit Keshre on the company’s plans to diversify its offerings with the fresh funds.
Groww has been steadily expanding to become a key player in the online investment market in India. More than 200 million people in India use digital payment methods, but the market for online investment platforms is small, with only around 30 million currently investing in mutual funds and stocks in the country.
The startup had over 15 million registered users earlier this year, two-thirds of whom were first-time investors. For its platform, Groww is looking to build a userbase of amateur investors from small cities and towns and make investing in stocks and mutual funds more accessible.
Groww was valued at $250 million in September last year. But in its last Series D round of funding led by Tiger Global in April, the company had raised $38 million which helped to propel the startup to unicorn status. Groww has now raised over $390 million to date through various rounds of funding and continues to expand its operations as it was approved for the acquisition of the mutual fund arm of the Indiabulls Group for Rs.175 crores earlier this year in September.
