Groww, an investment app that aims to focus on providing services to Indian millennials, has reportedly secured $21.4 million in capital through a Series B funding round – which was led by US-based VC firm Ribbit Capital. Existing investors Sequoia India and Y Combinator also took part in the round.
Groww, which was launched about three years back, is now offering commission-free investing in mutual funds through its official website. The app is available for Android and IOS as well.
The Indian Fintech firm claims over 2.5 million users across India, with the majority or over 60% of them coming from major cities in the country. Over two-thirds of the app’s users claim they’re beginners or first-time investors. Users have also mentioned that they began using Groww’s app because of its intuitive and user-friendly interface.
Groww’s management noted that they’ll use the capital raised to hire new staff members. The company is planning to have around 200+ employees. It’s also planning to offer new stock trading features, which may include the option to make investments in US-listed securities.
Lalit Keshre, co-founder and CEO at Groww, stated:
“We started Groww with a mission to democratise financial services in India. Today, we are the go-to platform for the new generation of investors. This round will enable us to strengthen our team to build exciting products – very soon, users will be able to invest in stocks on Groww.”
Indian Fintech StockEdge, with more than 1 million users, also aims to help traders with equity markets and mutual funds investments while focusing on improving their financial literacy.
Vinay Pagaria, co-founder at StockEdge, a company that helps India’s residents, particularly the younger generations, with learning more about how to responsibly and effectively invest their money in stocks and bonds, had noted earlier this year that 80% of the firm’s services are free to use.
Pagaria had noted (in June 2020):
“We created the StockEdge app to help retail investors make the best out of financial markets including both equity markets and mutual funds.”
He had also revealed that the StockEdge app is now also available on the web (at web.stockedge.com), in addition to the app. The Fintech firm provides offline research tools which it claims are meant for “serious money makers.”