Groww likely to reach unicorn status with backing from Tiger Global
Author : Pankaj Singh | Published Date : 2021-03-03
An American hedge fund, Tiger Global Management LLC, is in conversation to lead a USD 100 million funding round of millennials-focused investment app, Groww, valuing the firm at USD 1 billion. Sources close to the matter stated that Tiger Global will contribute about USD 50 million, with the remaining coming from current investors.
It is worth mentioning that the present valuation is about three times higher than in September the previous year when it bagged USD 30 million in funding.
With 10 million registered clients and a focus on millennials investing in financial products, the Bengaluru-based startup faces tough competition from Upstox, Zerodha, and Paytm Capital in India's booming online investment market.
Investors such as Sequoia Capital, Ribbit Capital, and US-based financial services-focused investor Propel Investment Partners have contributed close to USD 60 million in the business to date, sources confirmed.
Groww, first funded by Continuity Fund, a growth-stage investment fund run by Y Combinator, a well-known Silicon Valley startup accelerator, raised USD 21 million in 2019 from investors led by Ribbit Capital. Groww, established in mid-2016 by former Flipkart executives Ishan Bansal, Neeraj Singh, Lalit Keshre, and Harsh Jain, was a part of Y Combinator's winter 2018 unit, cited reliable sources.
Industry experts state that the business, which initially began with stock-trading services in 2020, is expected to expand its reach into the derivatives and government securities segments. As of now, its business model consists of a mix of fees on stock trading through a flat discount broking model, as well as fees for select subscription-based advisory services.
Credible sources cited that the company's value has increased drastically as a result of the recent prolonged bull run, and the recent funds will be used to grow into derivatives and other items.
The start-up has between 800,000 and 1 million active users, with monthly transactions reaching USD 500 million as of September last year.
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About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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