The Growth Story Of Groww

The Growth Story Of Groww

In a deal worth ₹175 crores, the 4-year old Groww will acquire Indiabulls’ 14 year old Mutual Fund business. With this, Groww will become one of the few fintech companies in India to have its own asset management business. In such short span, Groww’s growth story has been phenomenal. Read the story to know how 4 flipkart employees found the gap in Indian financial services and went on to build a unicorn.

Crux of the Matter

Founding Fathers
4 Flipkart employees, with an aim of making investing in India simple, left their jobs in 2016 to start their very own venture, Groww!

Founding Members:

  • Lalit Keshre– CEO
  • Neeraj Singh– CTO
  • Ishan Bansal– CFO
  • Harsh Jain– COO

The Common Ground

  • The founders believed that the process of investing in financial products was too complex in India.
  • In 2016, while India dwelled 200 million of people with investable income, only 20 million of the bunch invested actively.
  • The idea was to bring the rest 90% of the group on Groww’s platform by simplifying the investment.
  • Groww focused on availing the best customer experience. Multiple experiments were carried out to get the user experience right.
  • Reason? To make investing possible even for someone who’s just starting out.
  • Money is one of the important risk factors in investing. Thus, safety and security embedded in simplicity was what Groww wanted to provide.

Timeline

Major Investors

  • Tiger Global Management
  • Sequoia Capital India
  • Ribbit Capital
  • Y Combinator
  • Propel Venture Partners
  • Insignia Ventures partners

    Seed Funding was raised from CureFit founders Mukesh Bansal and Ankit Nagori along with Y Combinator.

Road Ahead
Groww plans to expand its financial services via launching:

  • Deposits
  • US Stocks
  • Sovereign Gold Bonds
  • Derivative Products

    By 2023, Groww plans to venture in financial education programs for millennials.

Curiopedia
  • Zerodha is a combination of ‘zero’ and ‘rodha’ (barrier) meaning zero barriers. India’s largest stockbroker, Zerodha was founded by Nithin Kamath and Nikhil Kamath in 2010.
  • Groww over time has received investments from investors around the world like Ribbit Capital, Sequoia, Y combinator, and Kauffman Fellows. It has raised nearly $21.4M from these Investors.
  • The 29-storey Phiroze Jeejeebhoy Towers houses the Bombay Stock Exchange. The building is named after the former Chairman of BSE, Phiroze Jamshedji Jeejeebhoy.

Investment Profiling Of Tiger Global Management

Investment Profiling Of Tiger Global Management

It’s raining unicorns, in literal sense! In just 4 months of 2021, India made a breakthrough of getting 13 unicorns. The Indian startup ecosystem is home to approximately 38,815 active startups and dwells over 5,694 active investors. But what is more intriguing is that one of the leading investors in these startups is the Tiger Global Management.

Crux of the Matter

About Tiger Global Management (TGM)
The American investment firm first came in India in 2006-07 and invested in Make My Trip, Just Dial, Future Group, etc. However, it shut its operations in 2009. A year later under the leadership of Lee Fixel, TGM invested in e-commerce platforms Flipkart and Myntra.

TGM’s Investment In Major Indian Startups
As per Venture Intelligence, total investments in the Indian startup ecosystem in just Q1 of 2021 hit a two-year high of $4.2 billion, 40% higher than Q1 of 2020. TGM has invested in 21 Indian Unicorns which is almost 50% of the total unicorns that India dwells. Of the 13 unicorns of 2021, TGM has invested in 7 of them.

TGM Investment In India

But Who Is The Driving Force Behind It?
Tiger Global Management (TGM) is a New York based investment fund focused on the global internet, software, fintech and consumer firms. It was founded in 2001, by Chase Coleman III who was a former technology analyst at Julian Robertson-owned hedge fund Tiger Management.

In 2000, when Robertson shutdown Tiger Management, he handed Coleman with over $25 million to manage, giving birth to Tiger Global Management. TGM was also an early investor in Facebook and LinkedIn. As of 2020, TGM’s assets under management amounted to $50 billion.

Curiopedia
  • From the period of 2007 to 2017, according to the Preqin Venture Report, Tiger Global raised the highest amount of capital amongst venture capital firms.
  • In 2020, Tiger Global earned its investors $10.4 billion, more than any other hedge fund on the annual list of the top 20 managers compiled by London fund-of-funds firm LCH Investments.
  • The sociologist Alfred W. Jones is credited with coining the phrase “hedged fund” and is credited with creating the first hedge fund structure in 1949. Jones referred to his fund as being “hedged“, a term then commonly used on Wall Street to describe the management of investment risk due to changes in the financial markets.

Meet India’s Latest Unicorn: ShareChat

Meet India's Latest Unicorn: ShareChat

Within half a decade of operations, ShareChat has raised $766 million and is now valued at $2.1 billion, making it India’s 9th Unicorn of 2021. Major investors include Tiger Global Management, LightSpeed Ventures, Twitter and Snap Inc. Known for creating a vernacular niche, ShareChat exploited the Indian Market after TikTok’s exit. But do the company’s financials justify such a mammoth valuation? Or is it its high user base that the investors are banking on? Read the story to find out.

Crux of the Matter

What Is ShareChat?
Owned by Mohalla Tech, ShareChat is a social media platform that enables users to share images, videos and status updates in their regional language. It also allows interactions with other users on the platform. It also owns a short video platform Moj – that was launched in June 2020 to fill the vacuum created following TikTok’s ban.

User Statistics

  • ShareChat monthly active users – 160 million
  • Moj Monthly active users – 120 million
  • It had vernacular presence in 15 regional languages.
  • On an average users spend 30 minutes every day on both the platforms.

Acquisitions Under Mohalla Tech

  • March 2019: Clip – A Short video sharing platform which hosted nearly 10 mn monthly active users (MAU) prior to acquisition.
  • Feb 2020: Elanic– An Online Fashion Marketplace that had 5 mn downloads and 1 mn MAU.
  • March 2020: Memer– It is a Meme discovery and sharing platform that dwells over 1 million originally content pieces.
  • August 2020: Circle Internet– A Platform providing local information in vernacular to users in tier II and tier III Indian cities. Dwells a network of 1k volunteers.

Business Model
Online Content Creation Business Models fall majorly in 2 categories:
A. The content is created and owned by the platform creators.
B. User generated content community – where customer creates the content. ShareChat works as per this model.

Revenue Model
Just like most of the user generated content, ShareChat makes revenue through advertisements. In FY 2020, 95% of the operational revenue was earned out of the advertisement contracts. Other income sources which stood at ₹ 28.74 cr came from interest earned on FDs and investments.

The Road Ahead
Both ShareChat and Moj have grown exponentially post the government ban on Chinese social networking apps.
The latest funding of $503 mn will be invested in enhancing the content recommendation tech of the platforms. As reported by the CEO, Ankush Sachdeva,the plan is to invest more in Machine Learning and AI in order to avail users customized content.

Curiopedia
  • In a tweet, Ankush Sachdeva, co-founder and CEO of ShareChat, said the Moj app was coded in 30 hours. It has received Google Play Best of 2020 Awards, as of 1 December 2020.
  • The first ever tweet was “just setting up my twttr“. It was written by Jack Dorsey, co-founder and CEO of the company.
  • “Me at the zoo” is the first ever video to be uploaded on YouTube. It featured YouTube co-founder Jawed Karim.

Indian-origin Entrepreneur's Venture, HighRadius, Becomes First Unicorn of the Decade

HighRadius, venture by an entrepreneur of Indian origin – Sashi Narahari, has become the first Unicorn of 2020. In the series B funding round, it raised $125 mn from San Francisco-based ICONIQ Capital to reach untapped geographies and escalate platform development.

Crux of the Matter
  • HighRadius was founded in 2006 by IIT Madras alumnus, Sashi Narahari. It remained bootstrapped for 11 years and received funding in 2017. It has become the first company of 2020 to become a Unicorn.
  • HighRadius enables AI-powered solutions to companies. Its Software as a Service (SaaS) provides the key service of automating financial functions of trade receivables and treasury management.
  • Taking into account bank statements, sales orders, purchase orders, expenses, and other incomes, HighRadius provides Cash Management with the help of AI and Machine Learning.
  • Headquartered in Houston and India, it is also backed by Susquehanna Growth Equity and Citi Ventures. It customers include more than 200 companies from Forbes Global 2000 companies. Adidas, Reebok, Walmart, Starbucks, Johnson & Johnson, Hindustan Unilever, P&G, Sony, etc. are among some of its top clients.
  • ICONIQ Capital investment will be used to tap new geographies and elevate platform development. “Its platform is game-changing for CFOs and finance departments,” said a partner at ICONIQ Capital.
Curiopedia

A unicorn is a privately held startup company valued at over $1 billion. The term was coined in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures. Decacorn is a word used for those companies over $10 billion, while Hectocorn is used for such a company valued over $100 billion. According to TechCrunch, there were 279 unicorns as of March 2018. The largest unicorns included Ant Financial, DiDi, Airbnb, Stripe and Palantir Technologies. Lyft is the most recent decacorn that turned into a public company on March 29, 2019. More Info