India's Groww raises $251m at $3b valuation
US-based Iconiq Capital has led a $251 million Series E round for India’s Groww, a financial services provider for the retail market, at a valuation of $3 billion.
Alkeon Capital, Lone Pine Capital, and Steadfast Venture Capital also participated, as did existing investors Sequoia Capital India, Ribbit Capital, YC Continuity, Tiger Global Management, and Propel Venture Partners.
It comes six months after an $83 million Series D led by Tiger Global. Total funding to date amounts to about $290 million, according to AVCJ Research.
Groww launched in 2016 to lower the barriers for individuals interested in investing in products such as mutual funds, stocks, exchange-traded funds, and IPOs. The offering includes a suite of easy-to-use apps and education materials. There is no fee for opening an account.
The company now claims to have more than 10 million users. It plans to extend its reach to under-penetrated geographies, strengthen the team, scale its tech infrastructure, and make large investments in financial education and awareness.
Democratization of financial services is a strong theme in Indian fintech. Sequoia India, for example, has invested in several other start-ups that make financial education a feature of their models, including Digit Insurance, which was valued at $3.5 billion in July, Turtlemint, another insurance provider, and FamPay, a digital bank for teenagers.
Mass-market inclusion has also proven a driving force in India’s fast-growing crypto finance scene. The two largest VC-backed companies in this space, Coinswitch Kuber and CoinDCX, have both emphasized retail investor education and product simplification as core priorities.
“Groww has been helping transform the way India invests by building a platform that exemplifies simplicity, trust, and constant innovation. The financial services market in India is already large, growing rapidly, and ripe for disruption,” Yoonkee Sull, a partner at Iconiq, said in a statement.
“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. Driven by an exceptional product-oriented team, Groww is already amongst the leading investment platforms in India, showcasing strong unit economics and customer cohorts.”
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