Groww Business Model - How Does Groww Earn Money?

Groww Business Model - How Does Groww Earn Money?
How Does Groww Make Money?

With 2024 beginning, the millennials have already crossed their 30s, they have become parents, and have got responsibilities on their shoulders. To begin a family and have a smooth-running life, you ought to have investments and should know at least the basics of the market. Especially when you live in India, where the economy is still recovering from a lot of losses and is on the verge, you need to have a fund ready by your side. 

Groww is a Bangalore-based company that is focused on providing its services for first-time investors and millennials. It is an online investment platform that allows its investors to open an account and transact in mutual funds and stocks. 

It aims to make the millennials understand the world of investing and at the same time, it even offers zero-commission investing in direct mutual funds. The platform is widely appreciated in India, for its lowest brokerage charge rates for stock investing. 

The investment hub has big plans for the future including that of entering the fields of insurance as well as neobanking. Currently, the investment company has partnered with 34 mutual fund houses, while it has 500 mutual funds available on its platform. 

With its app now used by thousands of Indians, the platform has grown more and more with the days passing by. 

If you are intrigued by the progress of Groww, let's take a stroll and study its business model. 

Groww - About
Groww - Business Model
How Does Groww Make Money?
Groww - USP

Groww - About

Founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal
Founded April 2016
Headquartered Bengaluru, India
Groww Founders - Ishan Bansal, Lalit Keshre, Neeraj Singh and Harsh Jain
Groww Founders - Ishan Bansal, Lalit Keshre, Neeraj Singh and Harsh Jain

Founded by the former employees of Flipkart, Groww initially began as a direct mutual fund distribution platform. The company has four co-founders, Harsh Jain, Neeraj Singh, Ishan Bansa and Lalit Keshre who is the CEO of the company. 

Groww has worked on a Do It Yourself (DIY) model and aims to simplify investment while also making it much more accessible to young people. Millennials are more fond of this platform as it allows individual investors to establish and also manage their own investment portfolios. 

Headquarters and Areas of Operation

Groww has its headquarters situated in the IT capital of India, which is Bangalore, also referred to as the Silicon Valley of India. And if you have got a smartphone you can start investing your hard-earned money from any part of the country with Groww at any time. 

One can even use this finance platform for investing in the US market, with free and instant trading account activation. 

Target Audience

Although the brand is always seeking new ways to reach new customers, Groww’s core target audience has always been the millennials. It has been practically adapting and leveraging the power of search engines to reach and grow its customer base. 

The investment platform usually targets millennials as it believes that this population covers nearly 3/4th of the total population in India. And that being true, the millennials are the largest group in India, who are on the lookout for a long-term goal. 

It also means that a young investor has additional ways to improve the chances of long-term financial success.

Key Services of Groww

Groww offers several valuable services, from online trading to, it has got each of its users covered with something interesting and yet profitable. It even has a mobile app that allows its customers to invest in Stocks, F&Os, fixed deposits, mutual funds, IPOs as well as US stocks.

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Groww - Business Model

Groww Website
Groww Website

Groww is known to be a zero-commission platform. However, it charges a small fees which is eventually paid by the mutual fund firm. The finance app basically gains its profits on the funds it sells.

Here’s an elaboration in the simplest way. Mutual fund investments are divided into two categories, regular investments and direct investments. 

1. Regular Investments

Here, a distributor is a middleman, and you have to pay a certain fee to him, which is his commission. The calculation of his commission still compensates you for your investments and profits. 

2. Direct Investment

Groww is a platform that allows its consumers a direct investing opportunity. It basically combines different funds and companies onto a single platform, because of which these funds are extended into a wide range of possibilities.

Its business model is based on allowing its users to invest in mutual funds as well as in equity, from any part of the world. For that, it has worked towards its technology tirelessly and made it simple and profitable. 

Groww’s business model aims at expanding its customer base. The investment company is known to go for proper use of technology and reach its audience. This can be profitable and is a good initiative because although the market has several such firms, once a customer has trusted you or has already used your platform, they are very unlikely to switch to other platforms. 

So reaching your target audience before others do is crucial these days.

How Does Groww Make Money?

In the financial year 2023, Groww reported its total revenue to be Rs 1,294 crore (USD 155789.84). This was a rise of 252% from what the company had made in its previous financial year.

If you are thinking of how these numbers were achieved, here are the revenue sources and ways through which Groww makes money. 

Commission Fee

First and foremost would be the commission fee that is paid by the mutual fund companies. Groww makes at least 54% of its revenue through commissions that it receives whenever its customer invests in a mutual fund, using Groww. 

The mutual fund companies are basically paying Groww for a huge user base. 

Value Added Services (VAS)

Groww also earns from Value Added Services that it provides to its clients. Here, the platform charges a certain amount of fee. VAS includes investment advisory services, Tax planning assistance as well as personalized services or guidance.


Groww is known to collaborate with other financial service providers and have them as its partners. These partners include insurance companies and also lending platforms. It is possible that Groww may earn a certain amount of revenue-sharing or referral fees through these partnerships. 

Groww - USP

Groww has a customer-first approach and the same is its USP. Recently, the founders of the company have been on rounds and approaching customers directly. This face-to-face conversation has certainly helped them to build a strong base for the company. 

Practically, this initiative works as having an in-person discussion with a customer that can directly help a company build trust. 

To build this trust, Groww met its investors in the Tier 2 and Tier 3 towns of India. The founders conducted roadshows, which was a medium through which they made their customers understand their platform. 

This even helped these founders to understand what are the needs of the basic Indians, and its targeted audiences who are the millennials. 

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Groww aims to provide a seamless platform for all of its customers. It has a business model that targets all kinds of audiences even though it aims at millennials to become its core customers.

The Indian investment company has a diversified range of financial products. With that, it even has services that promote transparency. 

Groww aims at continuing innovation and for that, it is being vigilant about the financial market and scenarios revolving around it. The business model of Groww encourages accessibility, diversification along with collaboration because of which the platform has become one of the giants in the e-trading industry. 


Who owns Groww?

Groww is owned by four former Flipkart employees named Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal.

Yes, Groww is 100% legal and secure to use in India.

Who is the CEO of Groww?

Lalit Keshre is the Co-founder and CEO of Groww.

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