Groww has become the latest startup in the MFD business to get the unicorn tag. Zerodha and PhonePe are the other two players having online MFD business in the $1-billion startup club.
Groww achieved the feat by raising $83 million in a series-D funding round led by Tiger Global. Existing investors Sequoia India, Ribbit Capital, YC Continuity and Propel Venture Partners also participated in the round.
Media reports said the funding came at a valuation close to $1 billion.
“The new capital will help us invest in new products, acquire talent and continue building our financial education platforms," said Lalit Keshre, chief executive officer (CEO) and co-founder, Groww.
The funding comes just six months after the startup raised $30 million in Series C funding in September 2020. The round was led by YC Continuity, Y Combinator’s growth stage fund.
The investment platform’s MFD business faces competition from peers like Zerodha Coin, Paytm Money, PhonePe, Upstox and ETMONEY, apart from the online investing platforms of AMCs and RTAs.
Started in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww is an online platform for mutual fund and equity investments. It claims to have over 15 million registered users.
In a blog published on Wednesday, the startup said it’s one of the largest mutual fund distribution platforms in the country registering more than 2.50 lakh new SIPs monthly.
