The startup, which is backed by Continuity Fund, the growth-stage investment fund operated by famed Silicon Valley-based accelerator Y Combinator, has so far raised closed to $60 million from investors such as Ribbit Capital, Sequoia Capital and US-based financial services-focused investor Propel Venture Partners.
Groww, founded in mid-2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, was part of Y Combinator’s winter 2018 batch. The startup competes with Steadview Capital and Tiger Global-backed IndWealth and Accel Partners’ portfolio company Scripbox in providing an online investing platform to consumers and retail investors, which allows them to invest in mutual funds and stocks, in what is being seen as an increasingly competitive space. “The recent sustained bull run has also helped the company’s valuation zoom manifold,” said a person with direct knowledge of the development. “The company will use the funds to get into derivatives and other products.”
While Tiger Global could not be reached immediately for comment. A Groww spokesperson is yet to respond to ET’s queries.
Groww, which received its broking licence in 2018, will continue to build its core mutual fund product, with a focus on creating more advanced features, such as advisory services, Keshre had
told ET in September last year. “The idea is to give an opportunity to consumers to diversify their product portfolio.”
The company has 800,000-1 million transacting users on the platform. The Groww platform had witnessed monthly transactions of more than $500 million by September last year.