It’s raining unicorns in the Indian startup ecosystem. After companies Meesho, Cred and Pharmeasy joined the unicorn club, online investment platform Groww has become the latest member of the group. The platform has raised $83 million in Series D round led by Tiger Global. The company has so far raised a total of $142 million.
The Bengaluru-based company is now valued over $1 billion with the fresh funding. Existing investors Sequoia Capital India, Y Combinator, and Ribbit Capital also participated in the round.
It is the second fintech firm to join the unicorn list after CRED and the fourth startup to become unicorn in three days. Since the start of the year India has seen eight unicorns.
Founded in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww enables users to invest in stocks, mutual funds, ETFs, IPOs, and gold in a simple, paperless, and hassle-free manner. It currently has over 15 million registered users.
“We have made good progress, but it feels we have just got started. 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 Keshre, CEO and Co-founder, Groww.
The startup competes with players such as Zerodha and Upstox. Tiger Global is also an investor in Upstox.
Groww plans to expand its product suite with the new fundraise, hire talent, and invest in financial education and awareness. In June last year, the startup 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.