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Separator

Groww Closing in on Closing a New $ 3 Billion Funding Round

Separator

Groww, an online investment startup that helps millennials engage in investment trusts and equities, has announced a new round of funding valued at $ 3 billion. In fact, it’s already in the advanced stage of negotiations.

It appears that the startup is planning to close a $ 250 million round within weeks.

Although the deal's parameters may vary, the startup has recently received numerous terms with comparable stipulations. Tiger Global, Coatue, and TCV have discussed leading or co-leading the round. Many companies, including Insight Partners, have looked into investing.

Groww is capitalizing on a massive market. In India, more than 200 million individuals use digital banking, yet only about 30 million invest in mutual funds and equities. Users can invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings, gold, and equities, including those traded on U.S. markets, through the startup. The app provides access to every fund currently available in India.

The new investment talks as well as the increase in proposed valuations to demonstrate the extent of interest in Indian startups in recent quarters. This year, more than two dozen Indian firms have become unicorns, up from 11 last year.

Following many months of impressive growth, investors are increasingly looking to back or double down on Groww. On that account, the Indian startup is on course to generate around $35 million in annual revenue. Groww was valued at $1 billion in April this year and $250 million in September last year, with Tiger Global and Sequoia Capital India among its existing investors.

Along the line, the startup is considering expanding into the crypto market, but hasn't made a definitive decision on when it will offer such trading.

Recently, the Competition Commission of India (CCI) granted Indiabulls Housing Finance (IBHFL) permission to sell its mutual fund business to Groww for Rs 175 crore.

On May 11, 2021, the company's wholly-owned subsidiaries Indiabulls Asset Management Company Ltd (IMACL) and Indiabulls Trustee Company Ltd (ITCL) signed a definitive transaction agreement with Nextbillion Technology, doing business as Groww, for the divestment of mutual fund business.

Indiabulls intends to sell its mutual fund business in order to focus on its retail estate asset management business, which is not the company's primary focus.

The new investment talks as well as the increase in proposed valuations to demonstrate the extent of interest in Indian startups in recent quarters. This year, more than two dozen Indian firms have become unicorns, up from 11 last year.

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