• Fintech unicorn startup Groww gets nod as payment aggregator from RBI.

  • The company boasts of several services like UPI payments, bill payments, stock investment platform etc.

  • The startup backed by Tiger Global and Peak XV Partners reported 1277 Crore rupees revenue in FY23.

Groww, a leading fintech unicorn, has achieved a significant milestone. The Reserve Bank of India has approved its function as a payment aggregator. This approval aligns company with a cohort of fintech entities that recently garnered similar nods from the central bank.

Under the banner of Groww Pay, the UPI payments platform associated with the brokerage firm now holds this coveted license. With this green light, the firm, backed by Tiger Global and Peak XV Partners, can seamlessly facilitate e-commerce transactions through its UPI application.

Since its launch in July of the previous year, its UPI app has enabled bill payment services, including loan and credit card repayments, electricity and water bill settlements, and DTH recharges.

In a notable development from October of the same year, the company surpassed its primary competitor, Zerodha, in terms of active users for the first time. By the end of 2023, it boasted 7.5 million monthly active users, outpacing Zerodha’s 6.7 million and AngelOne’s 5.3 million MAUs. Despite this, Zerodha retained the top spot in valuation at $3.6 billion, followed closely by Upstox and Groww, with valuations of $3.4 billion and $3 billion, respectively.

Further adding to its accolades, its Mutual Fund received approval from SEBI to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO) just last week.

Financial figures for the company also tell a remarkable story, with the startup experiencing a staggering 260% surge in operating revenue to Rs 1,277 crore in FY23. Moreover, the company turned a profit of Rs 448.7 crore, starkly contrasting the Rs 239 crore loss posted in FY22.

In line with industry trends, the company is also contemplating a shift in domicile to India. This strategic move echoes similar intentions from prominent companies such as KreditBee, Pine Labs, Razorpay, Meesho, and Zepto.

This development came after the RBI granted in-principle approval to 32 entities, including Khatabook, to operate as online payment aggregators in March of the previous year.

In the latest round of approvals, PayU received in-principle consent from the RBI to function as a payment aggregator. Other fintech players Razorpay, Cashfree, Open, EnKash, Juspay, and Infibeam have also secured payment aggregator licenses from the apex banking body, marking a continued evolution and expansion within the fintech landscape.