Groww Obtains Payment Aggregator License in 2024

Fintech unicorn Groww has secured a significant boost, receiving approval from the Reserve Bank of India (RBI) to operate as a payment aggregator. This move adds Groww to the growing list of fintech companies recently granted similar authorization by the central bank.

The license applies to Groww Pay, the UPI (Unified Payments Interface) payments platform of the broking firm. This development empowers Groww, backed by Tiger Global and Peak XV Partners, to facilitate e-commerce transactions seamlessly through its UPI app.

Groww Pay Offers Bill Payment Services

Launched in July 2023, Groww Pay has expanded beyond basic transactions. The platform now offers a suite of bill payment services, allowing users to conveniently manage loan and credit card repayments, settle utility bills like electricity and water charges, and recharge DTH subscriptions.

Groww Surpasses Competitors in Active Users

Groww’s strategic advancements are reflected in its user base. In a noteworthy achievement, the company surpassed its primary competitor, Zerodha, in terms of active users for the first time in October 2023. Groww ended the year with a robust 7.5 million monthly active users (MAUs), outperforming Zerodha’s 6.7 million MAUs and AngelOne’s 5.3 million MAUs.

Valuation Landscape in Fintech

While Groww has demonstrated impressive user growth, Zerodha currently holds the top spot in terms of valuation, standing at $3.6 billion. Upstox and Groww follow closely behind with valuations of $3.4 billion and $3 billion, respectively.

Groww Mutual Fund Receives SEBI Nod

Further bolstering its portfolio, Groww’s Mutual Fund recently received approval from the Securities and Exchange Board of India (SEBI) to launch a new fund offering (NFO) – the Nifty Non-Cyclical Consumer Index Fund.

Groww Reports Strong Financial Performance

Groww’s financial performance also reflects its burgeoning success. According to data intelligence platform TheKredible, the company witnessed a remarkable 260% surge in operating revenue for FY23, reaching Rs 1,277 crore. Additionally, Groww recorded a profit of Rs 448.7 crore, marking a significant turnaround from a loss of Rs 239 crore in FY22.

Groww Considers Domicile Shift

Following a trend among several fintech companies, Groww is reportedly exploring a potential shift in domicile to India. Entrackr exclusively reported this development in May 2023. Other notable fintech players contemplating similar moves include KreditBee, Pine Labs, Razorpay, Meesho, and Zepto.