ImpactAlpha, January 28 – Bangalore-based online investment platform Groww has raised $6.2 million in a Series A round to expand financial services available to working-class millennials in India. Sequoia India, Y Combinator, Propel Venture Partners and Kauffman Fellows invested in the round.
Groww was founded in 2017 to make it easier for young people in India to invest. “There are 200 million people with investable income in India, but only 20 million investors. The only way to bring the next 180 million on board is by making investing simple,” Groww’s Lalit Keshre told TechCrunch.
The startup’s app allows its users to invest directly in 5,000 different mutual fund options. To encourage investment, Groww lets users invest very small amounts on a recurring basis through what it calls ‘systematic investment plans.’ The company doesn’t charge transaction or subscription-style fees to its more than one million registered users, who are mostly people younger than 40.
Groww was a Y-Combinator participant in 2017. It counts Singapore’s Insignia Ventures Partners, Lightbridge Partners and Kairos among its previous investors backers.