Groww, a simple, free investment platform for millennials, has raised ₹43.4 crores ($6.2 million) in a Series A round of funding led by Sequoia India. Y Combinator, Propel Venture Partners and Kauffman Fellows also participated in the round. The funds will be used to build technology to scale and launch new products that offer high-quality investment options to the young, increasingly upward mobile generation.
“Millennials are increasingly moving towards financial products instead of real estate and gold. Our goal is to become THE wealth app for the younger generation. There are 200 million people with investable income in India, but only 20 million investors. The only way to bring the next 180 million onboard is by making investing simple”, said Lalit Keshre, Co-founder & CEO, Groww. “We want to create a platform that has all possible investment solutions within a tech-enabled, easy-to-use interface – and all this while providing the best-in-class user experience above all else. That is the fundamental premise of our offering.”
Launched in April 2017, Groww currently offers direct mutual fund investment plans and soon plans to roll out all other investment products including stocks. Groww focusses on millennial investors and has a fast-growing user base of over a one million users. They actively engage with this user base, sharing information around products and services that and help them make informed investment decisions.
“We are seeing strong growth in the Indian investor base which is fuelling the market need for a better and inexpensive investment platform like Groww”, said Ashish Agrawal, Principal, Sequoia Capital India Advisors. “With their strong product sensibilities and focus on the millennial investor, Groww aspires to be the preferred product for retail investors in India. Sequoia India is excited to lead the Series A investment and join the founder’s journey to transform retail investing in India.”
Groww is the brainchild of ex-Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal. The startup has been recognized by BSE for one of the “highest transaction in mutual funds” on a platform. The startup raised ₹11.2 crores ($1.6 million) in seed round from Y Combinator, Lightbridge Partners, Kairos, Insignia Ventures Partners, Mukesh Bansal and Ankit Nagori in July 2018.
When it comes to the Indian financial technology ecosystem, wealth management is increasingly attracting investor attention, after lending. Earlier this month, wealth management startup Scripbox raised ₹147 crores as part of its Series C funding from existing investor Accel Partners, along with participation from Omidyar Network, and NLI Investment Fund.