After six months of raising pre-Series A round, online investment platform Groww has closed its Series A round worth $6.2 million led by Sequoia India.
The Bengaluru-based startup also saw the participation of Y Combinator, Propel Venture Partners and Kauffman Fellows in the investment round. Y Combinator along with CureFit’s founders Mukesh Bansal and Ankit Nagori had put in seed fund in Groww in January last year.
The fresh capital will be used to build technology to scale and launch new products
Launched in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, Ishan Bansal, and John Francis, Groww offers millennials-focused investments products in special investment plans (SIPs) such as mutual funds.
The startup claims over one million registered users, especially in the 20-40 age group. The Android-only platform offers over 5,000 mutual funds scheme from 35 mutual fund houses including Axis Mutual Fund, Aditya Birla, SBI Bluechip, L&T, and HDFC.
It leverages data science to make investing simple and transparent. In the future, it also aims to make the entire process of investment, including KYC, paperless.
In the last four months, digital payments players such as Paytm, Mobikwik, and PhonePe had also forayed into wealth management segment. While Mobikwik and PhonePe are in initial their phase, Paytm Money claimed to have crossed 1 million users on its platform since inception.
Apart from the aforementioned, Groww faces direct competition from ETMoney, Zerodha, Scripbox, Kuvera and Piggy among others.
Of late, serial entrepreneurs including Satyen Kothari made a comeback with comprehensive wealth-management app Cube while Ashish Kashyap, who led ibibo Group had also launched a full stack wealth management app called IndWealth.
The development was reported by Mint.