It emerged as one of the top e-trading platforms after being founded in 2016 to make trading easier. Groww Business Model successfully bridges the gap by offering an easy-to-use platform for a smooth trading encounter. Groww, a wealth management business operating through WhatsApp groups five years ago, has achieved unicorn status by capitalizing on the rise in middle-class salaries and the widespread trend toward online investment.
The company in Bengaluru currently provides exchange-traded funds, mutual funds, equities, digital gold, initial public offerings, and direct investments within mutual funds. In addition to Tiger Global and Sequoia, it is supported by fintech investors YC Continuity Fund, Ribbit Capital, and Propel Ventures.
Understanding Groww
Four Flipkart coworkers, Lalit Keshre (CEO), Neeraj Singh (CTO), Harsh Jain (COO), and Ishan Bansal, established Groww in 2016. Groww is an online investment platform headquartered in India that caters to millennials plus first-time investors. Groww, which has its headquarters in Bangalore, enables investors to register an account online and conduct online stock and mutual fund transactions.
Groww Business Model is based on democratizing trading so that everyone can buy stocks without paying an additional commission. Its services are available to you at no cost. By June 2018, about 5000 mutual funds were available on Groww’s platform, and the company had collaborated with 34 mutual fund houses. With 8 million customers as of September 2020, the company has raised $59 million in venture finance.
Customers can use the app and its services for free, and as of April 2018, direct mutual fund plans are also available. Groww offers mutual fund explorers instructional resources on investing, mutual fund portfolios tailored to different aims and profiles, historical performance, and equities held. Groww expects customers to select their portfolio based on the information that is accessible; it does not offer recommendations.
Groww offers a SmartSave feature designed to help account customers save money. The money is kept in a liquid fund that may be redeemed instantly. Groww has extended to include stocks.
Groww Company Details
| Company Name | Groww |
| Origin Country | India |
| Founded | 2016 |
| Founders | Lalit Keshre, Harsh Jain, Neeraj Singh, Ishan Bansal |
| CEO | Lalit Keshre |
| Headquarters | Bangalore, Karnataka, India |
| Products/Services | Online Investment Platform |
| Revenue (FY22) | Rs.351 crore |
| Official Website | www.groww.in |
Groww’s Business Model
Groww’s advanced technology allows users to invest in shares and mutual funds from anywhere in the world. Turning yourself into a shareholder in a particular stock or mutual fund only takes a few mouse clicks.
Groww is a zero-commission platform; there are no setup fees, ongoing costs, or brokerage fees for mutual funds. It does goods and services tax (GST), levy regulatory and statutory charges, and flat-fee brokerage on stock and F&O.
Groww Revenue Model – How does Groww make money?
Groww generated income of Rs. 351 crores in FY22. It generates revenue in several ways.
Among its principal revenue streams are:
Mutual fund commission fees
Did you know that commissions from mutual fund firms account for about 54% of Groww’s revenue? The mutual fund companies pay Groww a commission each time you invest in mutual funds using this site. They draw in a sizable user base! It implies that by utilizing Groww’s e-trading platform, mutual fund businesses increase the size of their customer base. One noteworthy feature of Groww is that customers can trade mutual funds for free!
Value Added Services (VAS)
Groww charges for its users’ use of extra value-added services.
The VAS consists of:
- Services for investment advisory
- Help with tax planning
- Individualized services such as counseling
Stock Market Trading
Groww has extended its offerings to encompass stock market trading, enabling customers to engage in equity investments and stock trading. The business might make money via stock trade brokerage fees.
Collaborative Agreements
Groww can develop partnerships and collaborate with financial services providers, such as lending platforms and insurance companies. These partnerships may include revenue-sharing schemes or referral fees.
Conclusion
The core of Groww’s business strategy is to give people a simple way to invest in mutual funds, stocks, and other financial goods. Groww’s business model teaches us the importance of user-centric design and accessibility for trading platforms. Expanding the audience can be achieved by streamlining the investment procedures and offering an intuitive platform.
