Fintech unicorn start-up Groww’s valuation has reached $3 billion after a fundraise of $251 million, led by ICONIQ Growth, including participation from investors like Alkeon, Lone Pine Capital, Steadfast, and existing investors.
The platform, which can be used to invest in direct mutual funds, stocks, ETFs and IPOs, currently has more than 20 million users. The company had raised $83 million in its previous round, which was at a valuation of $1 billion and was led by Tiger Global.
Groww plans to extend its reach to the under-penetrated geographies, strengthen the team, and scale tech infrastructure. The company plans to continue making investments in spreading financial education and awareness.
Founded in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, the start-up competes with players such as Zerodha and Upstox. Tiger Global is also an investor in Upstox.
Lalit Keshre, CEO and co-Founder of Groww, said: “We will continue working hard to build an iconic and trusted brand out of India. Over the past five years, we have built a product that customers love and have lowered the barriers to investing across India.”
In June 2020, the start-up launched stocks with an easy-to-use interface for DIY investors. It is also among the largest mutual fund distribution platforms in India, registering more than 250,000 new SIPs monthly.
Financial education content has been a critical focus for Groww from its inception. In the next two years, Groww plans to launch a slew of financial education initiatives aimed at millennials and expand the market for financial services.