Groww, a mutual fund and stockbroking startup has raised Rs 49.9 crore in an equity investment round from its parent company, Billion Brains Garage Ventures Private Limited. This investment is said to be a part of the $21.4 million worth Series B funding round led by Ribbit Capital.
The firm has allotted 2.5 lakh compulsorily convertible preference shares (CCPS) at an issue price of Rs 1,986 per share to raise the total consideration of Rs 49.9 crore, according to the regulatory filings.
The Bengaluru-based company has decided to utilize the latest funds in expanding its reach and upscaling its business operations. Groww has raised around $36.22 million in four financing rounds since its inception three years ago. The startup counts on Y Combinator, Sequoia Capital, Propel Venture Partners and Kauffman Follows among others as its investors.
The app aims to help the amateur investors to make right investments in Special Investment Plan (SIPs) such as Mutual Funds. Groww has recently expanded its services from mutual funds and gold to stock trading. The startup caters to the audience between the age group 20-40 and claims to have over a million registered members.
The stockbroking features was added about five months ago in the app and almost 1 lakh consumers have already opened their account through invitation. The company claims that its users have completed 2 million transactions till date. With its stockbroking business, Groww is in direct competition with one of the largest stockbrokers, Zerodha.
Digital platforms such as Groww, ETMoney, Scripbox, IndWealth, Paytm Money, Kuvera, and Piggy have been recording a decline in their business due to the ongoing pandemic.