Groww Business Model – How It Earns Money?

What is Groww?

Groww is a fintech company in the investment business, based in India Like its tagline says ‘All things finance, right here’ , Groww is India’s fastest growing and most popular financial services platform. It allows and guides the users about how to invest efficiently in mutual funds, IPOs ( Initial Public Offerings), gold and ETFs ( Exchange Traded Funds).

Here are the steps to guide you about how to use Groww systematically –

1. Registration – Users have to sign in on the Groww app or website by filling basic details like name, email and contact number.
2. KYC ( know your customer) – Users have to submit necessary documents online to complete their KYC process, this is mandatory.
3. Pick the investment- After completing the KYC process, the users have to browse different investment options available on the Groww platform, and then select the investment plan according to their wish or the plan that suits them.
4. Research and analysis- Groww keeps the users updated and informed about the financial goals and risks, which again helps the users to do research and analysis so that they make appropriate investment decisions.
5. Proper investment – Users can invest in the plan that’s suitable for them, directly from the Groww platform. Groww helps their users to make goal based investment.
6. Portfolio management- Groww allows the users to track their investments in real time. This helps the users to manage their money and investments according to the current time.
7. Customer service- Groww provides efficient customer support to its users through all of its channels ( website, email, app, chat, etc.)

Groww is very popular amongst the users because of its extremely user friendly interface and operations,and provides many investment options to its users.  It works on various tools to help the users manage their money and investments wisely. Groww not only simplifies the investment process, but also makes it accessible for a wide range of users.

Groww has flourished by disrupting the traditional methods of investment. It has changed the way people used to invest in umpteen ways as follows-

1. Cost- effectiveness – Groww charges lower fees to its users as compared to traditional brokers and mutual funds distributor.
2. Easily accessible – Groww has made the insights about investment easy for the users. Groww is a user friendly platform that makes its accessibility lower barriers so that more new investors confidently enter the investment field.
3. Easy & Convenient – Groww platform is absolutely easy to understand and use, unlike those complicated traditional investment methods. It offers seamless intuitive interface for its users.
4. Multiple products availability – Groww offers stocks and ETFs apart from mutual funds, usually these stocks and ETFs aren’t easily available with the traditional brokers.
5. Education – This is actually the game changer, traditional ways of investment don’t indulge into education of the investors. Groww effectively guides and educates investors through blogs , tutorials and easy explanation.

Groww Business Model – How does Groww earn money?

Groww platform also requires money to profitably function itself. Groww earns money through various methods as follows-

1. Advisory services – Groww earns by generating revenues from advisory services where the users pay for personalized financial advices and portfolio management services.
2. Through commission- Users invest in mutual funds through the platform, Groww earns through this commission.
3. Premium services – Groww offers premium advisory services and premium tools, which also a way of making money for Groww. Groww charges subscription fees for these premium services.
4. Interest on idle cash – Groww earns from idle cash balances that are held and managed in the users’ accounts.
5. Through advertisements and promotions – Groww earns money through the advertisements and promotions featured on their platform.
6. Through partnerships and collaborations – Groww also generates revenue through its various partnerships and paid collaborations.

These various methods of revenue generation allow Groww to offer their mainstream services to the users for free. This helps the platform to monetize themselves and sustain the operations profitably.