Fintech unicorn Groww ventures into lending

Online investment platform Groww is adding a new industry to its offering: lending. The Bengaluru-based company has started offering lines of credit to select users based on their transaction history, according to its mobile app. This follows a massive fundraiser in October that valued the company at $3 billion.

The move is an important step by Groww in generating revenue that has not yet reached high numbers. According to our data tracking platform, the company has yet to disclose its financial statements for fiscal year 21 Trickypedia – It had negligible operating income for FY20 with a loss of Rs 8 crore.

Groww’s lending feature is very similar to CRED’s Stash, which also provides an instant line of credit to the platform’s consumers. Similar to Stash, Groww offers instant loan payout (a type of personal loan) with no paperwork.

According to information in the app, IDFC First Bank is Groww’s lending banking partner. Team Enttrackr has reviewed the lending feature named: Loan by Groww.

In addition to stock trading, Groww also enables mutual funds and fixed-term deposits. The company is also aiming to enter neobanking and insurance soon. untrackr would have exclusively reported his neo banking plan last November.

Inquiries to Lalit Keshre, co-founder and CEO of Groww, were not immediately answered. We’ll update the story once he replies.

In April 2020, Groww won as the second fintech startup unicorn status. Six months later, the Keshre-led company raised another $251 million Round led by Iconiq Growth with a valuation of $3 billion. Most recently, Microsoft CEO Satya Nadella did the same joined the company as an investor and advisor.

Groww competes directly with companies like Zerodha, INDMoney and Upstox. Tiger Global is a joint investor in all three companies. In lending, it would also compete with CapitalFloat, CRED, and InCred, among others.

While Upstox focuses on stock trading, mutual funds, and time deposits, INDmoney does the same started offering Third party loan products ranging from home equity, personal loans, real assets and investments. According to untrackr‘s sources, INDmoney is about to raise a $100 million round.