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  • 19 Dec 2022

  • 19 Dec 2022

Groww Business Model: To Democratize Access To Financial Services

Groww is an India-based online investment platform, a Fintech startup, that targets first-time investors and millennials, and is headquartered in Bangalore.

It allows investors to open an account electronically and transact in mutual funds and stocks online. It is an investment plan and a stockbroker, where one can make investments in and systematic manner. It is associated with an app that is very simple and easy to understand.

Mission and Vision

Groww is on a mission to democratize access to financial services for millions of Indians responsibly.


Founders, Lalit Keshre, Harsh Jain, Ishan Bansal, Neeraj Singh

The platform is associated with four founders - Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, who earlier had a good working experience at Flipkart. They were working with Flipkart till 2016 and started operations at Groww. They started Groww after having a good experience at Flipkart.

Lalit Keshre is the co-founder and CEO of Groww, he works on the startup business and customer experience. Harsh Jain is the COO of the company and heads the growth and business. Neeraj Singh is the co-founder and Chief Technology Officer of the platform. He works for product development and customer research at the platform. The co-founder and CFO are Ishan Bansal.

They both noticed one thing in the Indian investment culture there are 200 million people in India that have investible income, but only 20 million make an investment. So they thought to bring a platform that eases the investment journey of an investor and wanted the rest 180 million people to start investing. This brought the idea to start the Groww startup. They brought the platform in 2017 as a direct mutual fund distribution platform. It was the platform for directly purchasing mutual funds, and gradually it became famous for investing in mutual funds.

Slowly the customer base of the company increased and as per their demands, the company brought stocks and also launched digital gold, ETFs, intraday trading, and IPOs in quick succession.

The biggest challenge for the founders was to make the platform secure for the people to trust it. The platform took time to build up trust in the minds of people but got succeeded and associated many people with it.

It has 60% of its user base is from small cities and towns in India. They took efforts to make the application simple and convenient for the users so that if the users would not have even any basic knowledge of the platform, then also they can use it. They also went to small cities and small towns and conducted workshops to educate people about investing. They also started aggressive campaigns which helped the company to grow.

Business Model

It runs on a very simple business model. The company does not charge any fees from the clients for selling the investments. Rather it approaches the mutual fund houses and gets the commission from the fund houses. It also earns brokerages directly from the stock market.

Stock market investing is found very difficult by some people, but the Groww application has made it very simple and convenient to understand and use. It marks its importance in making a user-friendly application, which allows even those people who do not know about stock market investing.

It charges a small amount and is paid by the mutual fund firm. They get profit from the funds that they sell. There are two types of mutual fund investments - regular and direct. The application marks its importance in giving a direct investing opportunity to customers by combining different funds and companies into a single platform. Its exceptional features offer convenience and a better understanding that has increased its customer base. It leverages technology and reaches a target audience that reduces operating costs. The people can get access to the app and invest in mutual funds from anywhere in the world. It attracts the interest of the people because of its simplicity, convenience, and quality.

How Does It Work?

Its technology makes investing a simple, accessible, and transparent process of application that allows customers to invest in mutual funds without any difficulties. It allows users to invest in mutual funds through SIPs and equity-linked savings. The platform offers 5,000 mutual funds which can directly be invested through its website and application conveniently.

It is associated with a good pricing structure that consists of cheap trading fees, and people can invest in a mutual fund for free with no hidden fees. It does not charge an account opening fee or a monthly maintenance cost as well. One can earn 1.5% more with the direct mutual fund plan.


It offers stocks, mutual funds, digital gold, and US stocks as well. The platform also offers E-books, Resources, and Blogs that give an idea about the stock market essentials and updates in order to help the investors to get an idea about it which ultimately can help them make decisions.

Groww Expenses Breakdown

Groww, Expenses Breakdown

The employee benefit expenses of the company show expenses of Rs. 61.81 Crores, and the marketing and business promotional shows expenses of Rs. 49.76 Crore. The professional fees show an expenses breakdown of Rs. 3.26 Crores, whereas the software service and IT shows an expenses breakdown of Rs. 29.13 Crores, and others show an expenses breakdown of Rs. 11.7 Crores.

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