The news: India-based Groww is in talks to raise $250 million, which would push its valuation to $3 billion, up from $1 billion in April, per TechCrunch.
What does it do? Groww offers users access to stocks, mutual funds, and gold. It charges INR 20 ($0.27) or 0.05% per executed order, depending on which is cheaper.
Here’s why it could triple its valuation: After becoming a unicorn earlier this year, Groww acquired asset manager Indiabulls’ mutual fund business to broaden investing options for users and is on track to hit $35 million in annual recurring revenues (ARR).
And Groww’s backers likely see significant user acquisition opportunities for the fintech in the coming years:
The bigger picture: Indian fintech unicorns are multiplying at a rapid rate as the country’s tech-savvy yet underserved population makes investors bullish across fintech sectors.
India already hit $2.06 billion in fintech funding in H1, compared with $2.25 billion for all of 2020, pushing more startups into the unicorn club, including insurtech Digit Insurance, alt lender Five Star Business Finance, and credit card aggregator Cred. And the past year’s retail investing boom is doing the same for digital brokers like crypto exchanges CoinDCX and CoinSwitch.