Groww, an Indian fintech startup, has tripled its valuation to $3Billion in six months. The company is now looking to expand its offerings and help more millennials begin their investment journey in India's second largest internet market.
Iconiq Growth was the lead investor in the $251 million Series E financing round for Bangalore-based startups. The new round saw significant participation from Alkeon and Lone Pine Capital as well as existing investors Sequoia Capital India and Ribbit Capital, YC Continuity and Tiger Global and Propel Venture Partners.
Groww has raised more than $390 million and was valued at $250m in September 2013 and $1 billion in April 2014.
TechCrunch reported last week that Groww was in negotiations to close a $250 million round with a valuation of $3 billion. According to the report, there were multiple termsheets for the startup.
Groww is a platform that helps millennials to invest in stocks, futures, derivatives and mutual funds. Groww's co-founder and chief executive, Lalit Keshre, said in an interview to TechCrunch that the startup is introducing several additional asset classes to its users. He said that we plan to eventually offer all asset classes.
By democratizing access, we are making a positive difference in the lives and livelihoods of millions of Indians. He said that the journey is just beginning with so much opportunity ahead.
Groww has access to a large market. While India has more than 200 million users who transact money online, only 30 million invest in stocks and mutual funds. Two-thirds are first-time investors. The startup has over 15 million users. Groww users are also located in India's smaller towns and cities, with more than 60% being Indian. According to App Annie data, Groww had 12,000,000 monthly active users in March.
Although the startup did not update its user base today, Keshre stated that Groww has seen significant growth in the last 18 months as more Indians start to look into investing.
India's financial services market is large and growing quickly, making it ripe for disruption. Groww has shown that they are prepared to seize this opportunity through strong accelerating momentum predicated upon strength of technology over the past couple of years, stated Yoonkee Sul, partner at ICONIQ Growth in a statement.
Groww, driven by a product-oriented team and strong unit economics, is one of the top investment platforms in India. We are thrilled to join the company's vision of becoming the premier financial platform for Indian consumers.
Keshre stated that the startup will use the new capital to support its long-term growth as well as educate the first investors.
TechCrunch reported that Groww is, along with a few other Indian startups, studying cryptocurrency. Keshre stated that the startup will not offer investors such an opportunity until Indian regulators approve it. According to the publication, the startup in India is on track for a total of $35 million in ARR.