Remember the traditional investment process in India?
One daunting task that would involve heaps of papers, multiple visits to your bank, and days before your application can be processed. One person handling multiple investor queries led to delays. And let’s not forget the commission charged by the brokers. Young professionals were unable to make direct investments due to a lack of understanding of investment options, and a lack of educational resources to comprehend the process and risks associated. Top this with the nature of opacity in traditional investments making it a cumbersome process. This deterred many potential investors from investing in mutual funds, stocks, and other investment options.
How Groww entered to disrupt the market…
Groww entered the market with a clear mission:
“Easy. Fast. Transparent.
Investment in India was none of the above. But we are changing that. Super easy to use, lighting fast and crystal clear.”
The brand focused on making investment more accessible, particularly for the young millennials who became their prime target audience. As India’s leading digital business, Groww is a pioneer in changing the investment landscape in India. Founded in 2017 by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, Groww is a fintech investment start-up. The brand has its headquarters in Bangalore. It is backed by Sequoia Capital, Ribbit Capital, YC Continuity, Propel Venture Partners amongst others. Groww is valued at close to $3bn after its Series E funding round.
This mutual fund investment platform offers investment in:
-Digital Gold, and
Their investment platform..
They offer a seamless investment platform that allows users to make direct investments in mutual funds and stocks.
‘Bringing the Indian market to your fingertips’
Once a user signs up on Groww platform, they can invest in mutual funds via SIPs. With a wide range of over 500 mutual funds to invest in, users can access this via the application on their phone or via the website. With a straightforward pricing structure, inclusive of a cheap trading fee, Groww does not charge users for opening an account. As a user, you can invest in mutual funds with zero hidden fees.
The brand is a pioneer in bringing investment to the Indian market segment on their mobile phone. Making them just a click away offering all essential information in one space to avoid any hassle. The online investment platform is a creator of a mutual fund direct access platform and has been one of its key differentiators in the market. It has set the brand apart from its competitors like Upstock, 5paisa, Flyers, and others.
What are its unique features that help Groww to differentiate from its growing competition?
The brand boasts of its ‘Zero fixed charges’, ‘Zero maintenance charges’, and ‘Zero hidden charges’. With the low fees and percentage cuts at a minimum along with its exceptional user interface, Groww stands out from its competition.
Differentiators from traditional investment methods:
a. Professional assessment and expert opinions: Groww offers expert assessments on stocks – giving users an idea of whether they should consider buying, selling, or holding a specific stock.
b. Investment track record: Groww offers users historical data on stocks and SIPs, allowing them to assess a stock’s performance over its lifetime. Offering users valuable insights on a stock’s trading history in the stock market and historical ROI on mutual funds.
c. Track investment: Consolidate and monitor all your investments made on Groww or outside of the platform on the Groww application. The user-friendly app enables users to centralize their investments making it simple and accessible to manage.
d. Empowering investors with education and information: The fintech start-up is aimed to empower the young generation with knowledge on financial investments. With its range of E-books, resources, and blogs, the brand helps investors and potential investors to make informed decisions.
e. Cost-effective: Traditional investment options included the brokers charging commissions. Groww enters the market as a game changer. The brand eliminated hidden charges and complexities. While the brand does charge a small fee, users do not bear the brunt of it. This fee is paid by the mutual fund firm and not you as an investor on the platform.
f. Simple, Transparent, and Accessible investment: The Groww platform simplified the cumbersome investment process to attract millions of potential investors in India. With its user-friendly application and a simplified paperwork process, Groww offers transparency in fees and investment options.
g. Mobile-first approach: The biggest game changer has been offering all investment options in your hands. Mobile accessibility allows young investors to manage their investments on their smartphones. Attracting Gen Z and millenials.
With its pioneering work in the investment sector, Groww has some of the following awards:
2017-18 : BSE Star MF award for Karnataka’s 2nd best performer in RFD category
2017-18: 3rd place in BSE Star MF Fintech for highest transaction competition
2018-19: BSE Star MF Fintech – Highest Transactions
Groww is also part of CB Insights List of 250 world’s most promising companies.
Also read: Tips to scale your digital business
Basis a stock exchange filing by Indiabulls, Groww has recently acquired Indiabulls Housing Finance’s entire mutual fund business for a figure of INR 175.62 crores. This transaction was completed in May 2023. This is a strategic move from Groww that aligns with their mission to enhance the accessibility, simplicity, and transparency of mutual funds for their investors.
The brand entered the unicorn list in 2021 and is busy recruiting new talent, building new products, and curating an educational platform for investors. Their future strategy plans include launching deposits, credit, and US stock. They aim to grow its financial education content that they consider crucial to their success primarily aimed at millennials. They have over 40 million users and are focused on educating their user base on various investment types.
As a leading brand, Groww has had a disruptive impact on the investment design structure of the Indian market. It has been able to not simply challenge it but also break the barriers to entry in the investment world. Empowering millions of Indians to become investors, the brand has been at the forefront of bringing a paradigm shift from traditional and rather complex ways of investment. Making it simple, digitally savvy, and cost-effective.
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