This article talks about Groww, Its features, business model, fundings, and various competitions faced by it.
The popularity of stock markets and mutual funds has grown tremendously in recent times among the Indian population. People are becoming aware of stocks and mutual funds and the benefits that they bring to their portfolios. In India, investors have plenty of options when it comes to platforms used for investment. Investors would like to choose the best available platforms for their investments, one which is safe, stable, and reliable. One such platform is Groww App, which has emerged as one of the most reliable and fastest-growing investment platforms of India.
Launched in 2016, by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh (formal employees of Flipkart), Groww is an investment platform where investors can find and invest in the best stocks and mutual funds. Groww is the brand name for Nextbillion Technology Private Limited, which is a SEBI registered stockbroker and a member of both BSE & NSE. Groww offers investors an objective evaluation of the specific stocks and mutual funds so that investors can make sound investment decisions as per their goals. Groww has shown a remarkable growth trajectory evidenced by its expanding user base. Currently, more than 10 million investors are registered on the Groww App. Investors willing to invest in stocks and mutual funds through Groww App can download the app on their smartphones from Android or iOS App Stores. Investors can start with their investments on the App through a free and straightforward process without the requirements of any actual paperwork. One of the best features of the Groww App is that it allows investors to directly invest in mutual funds and select their SIP plans free of any commission charges.
Why should you choose to Invest through Groww App?
Groww facilitates transparency and simplicity through its App. Groww App is beginner-friendly and is one of the best options for new and inexperienced investors. All the charges and commission charged on Groww are clearly visible and informed to the users and there are no hidden charges. Some of the features of Groww that makes it one of the best investment platforms in India are as follows:
Ease of Use: Groww allows you to invest your money in an easy and simple manner. You just need to create your account on its platform and carry out the online KYC process. The user interface of the Groww App is also very easy to navigate. Groww allows you to invest with just the touch of your fingers.
Mutual Fund Investments: Groww not only allows you to navigate and analyze all the mutual funds available in the market, but it also allows you to choose and invest in the funds best for you. More than 5,000 mutual funds are offered by the Groww App. Also, 0% commission is charged on your investments in mutual funds. Through Groww you can also make your SIP plans and it also gives you an option of Auto paying your periodic SIP directly from your bank account.
Investment in Stocks: Through the Groww App you can open your Demat Account in less than 30 minutes through an online process. Groww App allows you to invest in US stocks along with Indian. You can also apply for the IPO of an Indian company directly on the platform.
Gold Investments: Groww App offers its users to buy digital gold with a purity of 99.90%. It allows you to buy, sell or accumulate gold as per your future goals and requirements.
Informational Resources & Blogs: Groww provides you with a large collection of educational and informational materials on its platform. If you have just started your journey as an investor, these resources can help you to learn more about the financial market.
Dashboard: Sometimes when you make multiple investments, it becomes very difficult for you to keep a complete track record of all your investments. Groww App keeps your complete investment track records on your personal dashboard. Your dashboards show your total investments, profits, current IRR, and other relevant details so that you can plan your future investments accordingly.
Business & Revenue Model of Groww
Groww business model is not very complex. Groww allows its user to open Demat Accounts without any account opening charges. Groww also does not charge any annual maintenance charges like other brokerage firms. Groww operates as an online discount brokerage firm. All the services offered by Groww are carried through their official app or website.
The brokerage charged by Groww is one of the lowest in the market. The equity brokerage charged by Groww is Rs. 20 or 0.05% of the transaction value, per executed order whichever is lower. The future brokerage on the Groww platform is flat Rs. 20 per executed order. Investors are charged no commission or fees, whatsoever, in mutual funds transactions. Groww works on the concept of charging money from the mutual fund provider companies instead of from their users. The revenue generation of Groww is largely based on the number and volume of the trades done on the platform on a regular basis. Therefore, Groww aims to increase its user base to generate greater revenues. Groww also generates revenue by offering premium features to its users such as investment advisory and portfolio management services.
Funding and Investors of Groww
Groww joined the unicorn club in April 2021 when its valuation crossed $1 billion. In the latest funding round, Groww raised $251 million tripling its valuation in just 6 months to $3 billion. This round of funding was led by ICONIQ Growth along with existing investors including Sequoia Capital, Ribbit Capital, Tiger Global, YC Continuity, and Propel Venture Partners.
Competitors of Groww
The number of players in the brokerage fintech market is increasing each passing day. Groww competes for business among companies like Zerodha, which is the largest stockbroker in India, and Upstox, which offers similar services and brokerage frameworks as offered by Groww. Apart from these two, Groww faces intense competition from companies such as Angel Broking, Sharekhan, IIFL, 5paisa, etc.
Groww is gaining popularity among investors through its aggressive marketing and promotional strategies. Groww offers a good platform with a simple user interface for both experienced and new investors. Groww allows you to deal directly with Asset Management Companies for transacting mutual funds, thus it eliminates middlemen, which in turn reduces the cost to the customers. Investors seeking to invest in the financial market can definitely try this platform as it makes the entire investment process simple and hassle-free.