Investment platform Groww on Wednesday said it has raised $83 million as a part of its Series D funding round, led by Tiger Global Management, at a valuation of more than $1 billion. Existing investors Sequoia India, Ribbit Capital, YC Continuit, and Propel Venture Partners also participated in the round.
The company had raised $30 million as part of its Series C funding in September, led by YC Continuity, Y Combinator’s growth stage fund.
Groww is the second fintech startup to turn unicorn this week, after Kunal Shah-founded Cred. The first week of April this year, has already given birth to three unicorn companies in the Indian startup ecosystem, including parent of online pharmacy PharmEasy, API Holdings.
Groww plans to use the funds to expand its product line, hire new engineering talent and invest in new education initiatives for first-time investors.
The five-year old company enables its user base to invest in stocks, direct mutual funds, exchange traded funds (ETFs), digital gold as well as initial public offerings (IPOs).
“We started Groww almost five years back to make investing accessible and transparent to everyone in India. We have made good progress, but it feels we have just got started. Only around 25 million people in India are investing in stocks or mutual funds. We will continue working to change this. The new capital will help us invest in new products, acquire talent and continue building our financial education platforms,” said Lalit Keshre, chief executive and co-founder, Groww.
Groww claims to have added almost 7 million registered users in the last six months, and says it has close to 15 million registered users at present, with 4 million active monthly on its platform.
The company had launched its stock broking business, Groww Stocks, last year, and claims to have opened 2 million trading accounts till date. It also witnesses close to 250,000 new SIPs made on its platform, every month, it says.
With the fresh funds, the startup also plans to launch futures and options, as well as derivative trading on its platform, and provide alternative investments to users through investment in government bonds.
Groww competes with online stock brokerage Zerodha, Upstox, as well as Paytm Money, the wealth management division of One97 Communications Ltd,. the brand that owns Paytm.
Bootstrapped Zerodha had entered the unicorn club after it undertook an ESOP buyback exercise in June last year.
Recently Mint reported that Paytm Money is targeting 10 million users and over 75 million transactions by end of March 2022. Paytm Money, at present, has close to 7 million users.
This story was first published on livemint.com.