Image courtesy: inc42
Bengaluru based fintech startup Groww announced a revenue of INR 76.16 lakh in the fiscal year ended March 2020, a growth of 823% year-on-year from last year’s INR 8.25 lakh according to the company’s filing with the Ministry of Corporate Affair.
“As this is the fourth year of operation, due to various operational setups, the company is unable to earn profits,” read the filing.
Income from operations is little more than INR 29 lakh and the rest is income from profit from the sale of investment and interests on deposits from various banks.
In this period the company’s expenses grew by 2,703% from INR 31.76 lakh in Financial year 2019 to INR 8.69 Cr in FY20. In FY20 the company’s net loss was INR 7.63 Cr, 3,348% increase in loss.
Diving into more depth, we have the breakup of company’s expenses, where there was a growth from INR 4 lakh to INR 4.9 Cr in employee benefit expenses. Depreciation, amortization and impairment expenses which fell by 78% and other expenses spent on rent, fuel, legal, transportation, advertising and other miscellaneous expenses rose by 2,792%.
Investment tech platform Groww was founded by ex-Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal. It offers a platform for direct planning of mutual funds and investing via mobile application and the web platform. Further it enables users to invest in gold, stocks, mutual funds, ETFs, and IPOs.
Last Month, Groww became a part of the Unicorn Club when it raised $83 Mn in its Series D funding led by the Tiger Global at a valuation of $1 Bn. The startup boasts over 8 Mn registered users. With this pandemic there was a rise in popularity for like companies such as Zerodha, ETMONEY, Paytm Money, smallcase, and Upstox.
As millennials start exploring investment options backed by social media trends in the Covid 19 pandemic, the platform has seen an accelerated growth. The company plans to expand and launch a slew of financial education initiatives aiming to increase financial awareness among the millennials.