Knowledge and skill are the two crucial factors that determine your success in the investment & trading journey. There used to be a time when only a handful of people had access to both of those factors. Due to this ordinary people were unaware of the ups and downs of the investment journey. To fill this gap, numerous e-trading platforms emerged. One such successful platform was Groww! Do you know, Groww valuation is Rs.24,600 crores ($3 billion)?
How did it reach such a massive valuation? You may wonder!
Due to its effective business model that won the trust of the customers as well as the investors. We have explained Groww business model in detail. You can look into it for more details.
Recently, Groww valuation has created a buzz in the public! Why and How? Are you curious to know? Go through this article, and you will get the answer.
Keep reading!
Groww Valuation
According to Traxcn, Groww valuation is $3 billion or Rs.24,600 crores as on October 2021. The company hasn’t released any official data yet.
This B2C Company mainly works in the following ways-
- It is an app-based trading and investment platform having access to multiple markets.
- You get a wide range of investment options. Such as Mutual Funds, Stocks, Digital gold, IPOs, etc.
- It offers technical charts so that you can track the market movement.
- You will get a screener to filter out the investment options.
- The news about the stock and the listed company’s financials are regularly updated.
Thus, with proper functions, it earned good revenue and got significant investments. We will discuss it in the upcoming sections.
Fundings and Shareholders Breakdown
Since Groww is a private entity. Therefore, it gets funds from investors. They are the pillars behind the giant valuation of Groww. All thanks to those venture capitalists due to which Groww valuation rose to Rs.24,600 crore.
Let’s look at the funding rounds of Groww-
| Venture Capitalists (Lead Investors) | Funding Amount | Series of the Funding Rounds |
| ICONIQ Growth | $251 million (Rs.2,050 crore) | Series E (October 24, 2021) |
| Tiger Global Management | $75 million (Rs.620 crore) | Series D (April 7, 2021) |
| Y Combinator Continuity Fund | $30 million (Rs.246 crore) | Series C (September 10, 2020) |
| Ribbit Capital | $21.4 million (Rs.175 crore) | Series B (September 18, 2019) |
| Peak XV Partners | $6.2 million (Rs.50 crore) | Series A (January 23, 2019) |
| (Lead Investors’ name undisclosed) | $1.6 million (Rs.13.1 crore) | Seed Rounds (July 9, 2018) |
Groww has raised a total of $393.3 million in funding over 6 rounds. Its latest funding round occurred on October 24, 2021.
Currently, Groww valuation is Rs.24,600 crore ($3 billion). Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.
Is Groww Profitable?
With a massive valuation, the question of profitability is inevitable. Why? You may ask. Because investors provide funds to the company only if it operates effectively and makes good profits. However, that’s not the case in the current market situation.
Numerous startups are going through funding winters and making losses! But still, investors are patient enough to have a far-sighted vision. They believe that the company will make profits after it holds a dominant position in the market.
Is Groww stuck in the same situation?
Let’s find out by looking into its financials-
Revenue Breakdown
In the fiscal year 2022, Groww’s revenue jumped by 11.7 X to Rs.351 crore. In FY 21, it earned hardly Rs.30 crore. This was a massive scale-up of the revenue. It earned money mainly through the following sources-
| Revenue Sources | Amount Earned in FY22 |
| Fees and Commission Income | Rs.326 crore |
| Tech Platform and Support Charges | Rs.2 crore |
| Other Operating Revenue | Rs.23 crore |
| Total | Rs.351 crore |
The subscription fees and commissions contributed to approx.93% of the operating revenue.
Expenses Breakdown
The amount of money spent on expenditures and revenue determines whether the company will be profitable or at a loss. Let’s look at the expenses of Groww-
| Expenses | Amount Spent in FY22 |
| Advertising & Promotional Expenses | Rs.254 crore |
| Employee Benefit Expenses | Rs.230 crore |
| Transaction and other related charges | Rs.76 crore |
| Information Technology Expenses | Rs.84 crore |
| Legal Professional Fees | Rs.9 crore |
| Others | Rs.11 crore |
| Total | Rs.664 crore |
Overall Financials of Groww
| Groww Financials (FY22) | Amount (in Crores) |
| Market Valuation | Rs.24,600 crore ($3 billion) |
| Revenue | Rs.351 crore |
| Expenses | Rs.664 crore |
| Profit/Loss | Loss of Rs.239 crore |
The total expenses jumped to Rs.664 crore while the revenue was Rs.351 crore. Thus, Groww wasn’t profitable in FY22. It jumped into humongous losses of Rs.239 crore.
Future Plans of Groww
As you have read, the existing investors of Groww include some giant venture capitalist companies. Such as Ribbit Capital, YC community, Tiger Global, etc. Although the company drowned in huge losses due to its expenditures. But it sees them as potent investments that will aid in the expansion of their user base and revenue sources.
This emerging B2C fintech platform is planning to expand its business operations to reach the under-penetrated market of India. It is heavily investing in up-scaling its team and infrastructure. All of this will help in improving the accessibility of Groww financial services to Indians.
I use Groww for obtaining information about investments in stocks and trade. I also use Groww app because of its user-friendly interface and updated information. Thanks for sharing the financials of the company.