Millennials-focused investment app Groww has raised $83 million in a Series D funding round led by Tiger Global. Existing backers Sequoia India, Ribbit Capital, YC Continuity and Propel Venture Partners also participated in the round. The five-year-old company has turned into a unicorn with this new round.
Entrackr had exclusively reported about Tiger leading Groww’s new round at over $1 billion valuation on March 1.
Groww has become the fourth unicorn this week and overall eight in 2021. The list includes PharmEasy, CRED, Meesho, Digit Insurance, Innovaccer, Infra.Market, Five Star Business Finance (NBFC).
“… 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 – CEO and Co-founder, Groww.
With its valuation over $1 billion, Groww has become the highest valued startup in the wealth management space. It lets users invest in SIPs, mutual funds, stocks (including Futures and Options), gold and fixed deposit.
Over the past six to eight months, Groww has been aggressively spending on consumer acquisition and this could be evident from its Blitzkrieg advertising campaigns.
It’s worth noting that Tiger Global is an existing investor in Groww’s rival Upstox and INDMoney. Groww’s competition also includes Paytm Money, Zerodha and several others.
According to Fintrackr, Groww has recorded a healthy surge in earnings which jumped 4.7X to a little over Rs 1 crore in FY20 from only Rs 20.14 lakhs in FY19. The company pumped money into its operations to accommodate for the increased scale and as a result, its total expenses shot up 20.3X to Rs 8.92 crore in FY20 from less than Rs 45 lakhs in FY19.