Y Combinator’s Continuity Fund leads $30 million funding in Groww, Expertise Information, ETtech
On-line funding platform Groww has secured $30 million (about Rs 221 crore) in recent fairness financing, led by Continuity Fund, the growth-stage funding fund operated by famed Silicon Valley-based startup accelerator Y Combinator.
The newest funding spherical comes virtually precisely a 12 months after the Bengaluru-headquartered startup raised $21 million from fintech-focused funding agency Ribbit Capital, which ET reported in September final 12 months.
The present spherical has additionally seen participation from Ribbit Capital, Sequoia Capital and US-based monetary services-focused investor Propel Enterprise Companions – all present buyers in Groww.
Groww, based in mid-2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, was additionally a part of Y Combinator’s winter 2018 batch.
The funding by Continuity Fund is prone to be its second in India, after the one in home-grown fintech main Razorpay earlier.
Groww competes with Steadview Capital and Tiger International-backed IndWealth and Accel Companions’ portfolio firm Scripbox in offering a web-based investing platform to customers and retail buyers, which permits them to put money into mutual funds and shares, in what’s being seen as an more and more aggressive house.
The corporate has, until date, cumulatively raised an estimated $60 million in funding throughout rounds.
The newest spherical additionally has a small secondary part, with some angel buyers within the firm, which embrace Curefit founders Mukesh Bansal and Ankit Nagori, promoting a portion of their stakes.
Keshre, chief government of Groww, nevertheless, didn’t disclose the names of the promoting stakeholders or the overall proceeds from the secondary share sale.
“We can be utilizing the proceeds to construct many extra merchandise, groups, infrastructure… For now, we’re centered on the inventory investing platform, and wish to scale that. We additionally plan to launch worldwide equities, the place individuals can put money into US shares,” Keshre advised ET in an unique interplay.
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The corporate can also be at the moment engaged on different merchandise, akin to derivatives, he mentioned.
Groww, which obtained its broking licence in 2018, will proceed to construct its core mutual fund product, with a concentrate on creating extra superior options, akin to advisory companies, Keshre added.
“The thought is to offer a chance to customers to diversify their product portfolio,” Keshre mentioned. The corporate mentioned it has 800,000 registered customers on the platform. The Groww platform had witnessed month-to-month transactions of greater than $500 million, he mentioned.
Y Combinator’s Continuity Fund usually backs YC alumni corporations and invests between $20 million and $100 million, normally coming in on the Collection B spherical or later. It counts the likes of Gusto, Instacart, Stripe, Monzo and DoorDash amongst its portfolio.