Groww has tripled its valuation to $3 billion in just six months as the Indian fintech startup looks to broaden its offerings and help more millennials start their investment journey in the world’s second largest internet market.
Iconiq Growth led the Bangalore-based startup’s $251 million Series E financing round. Alkeon, Lone Pine Capital and Steadfast as well as existing investors Sequoia Capital India, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners “significantly” participated in the new round.
TechCrunch reported last month that Groww was in talks to finalize a $250 million round at a $3 billion valuation. The startup had multiple termsheets, the report added.
Groww helps millennials invest in mutual funds, futures, derivatives, stocks, and initial public offerings. Lalit Keshre, co-founder and chief executive of Groww, told TechCrunch in an interview that the startup is working to introduce several more asset classes for its users to invest. “We plan to offer them all asset classes eventually,” he said.
“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,” he said.
Groww is tapping into a huge market. More than 200 million people in India transact money digitally, but fewer than 30 million currently invest in mutual funds and stocks. The startup had over 15 million registered users earlier this year, two-thirds of whom are first-time investors. Additionally, more than 60% of Groww users are in smaller cities and towns of India. (Groww had 12 million monthly active users last month, according to data from research firm App Annie.)
The startup didn’t update its user base figure today, but Keshre said Groww has grown significantly in the past 18 months as more Indians begin to explore investments.
“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 strength of technology,” said Yoonkee Sull, partner at ICONIQ Growth, in a statement.
“Driven by an exceptional product-oriented team, Groww is already amongst the leading investment platforms in India, showcasing strong unit economics and customer cohorts. We are excited to participate in the company’s vision to be the primary financial platform for Indian consumers.”
Keshre said the startup will deploy the fresh capital for its long-term growth and educating the first time investors.
TechCrunch reported earlier that Groww, like a handful of other India startups, is studying cryptocurrency. Keshre said the startup won’t offer such investment opportunity to users until the Indian regulator clears it. The Indian startup is currently on track to clock about $35 million in ARR, the publication reported.