Nextbillion Technology Pvt Ltd’s which operates Groww has turned profitable thanks to its rise in its revenue, according to regulatory filings obtained by VCCircle.
The company reported a net profit of ₹2.72 crore in FY21 against a loss of ₹7.93 crore in FY20, the company’s filings with the Ministry of Corporate Affairs (MCA) show. Consolidated revenue rose to ₹40.4 crore in the fiscal year 2021 from ₹2.9 crore in FY20, a 14-fold increase. Majority revenue came in from brokerages and allied services income which rose from ₹2.9 crore in FY20 to ₹34.7 crore in FY21.
The company’s software and license charges saw a steep increase to ₹168 crore which can be attributed to its entry into the brokerage business. Employee wages and bonus costs rose to ₹8.31 crore against ₹4.66 crore from the previous year.
Earlier this month, Satya Nadella, Chairman and CEO of Microsoft Corp., joined Groww as a new investor and adviser.
In October 2021, Groww raised $251 million as a part of its latest Series E funding led by IconiQ Growth, almost tripling its valuation to $3 billion in a little over six months. Groww raised $83 million in April 2021 as a part of its Series D round led by Tiger Global, which valued the company at a little over $1 billion.
Groww is an investment platform that allows users to invest across direct mutual funds, exchange-traded funds (ETFs), stocks and IPOs. It also provides tools for stock and portfolio analysis for investors.
Currently, the company claims to have over 20 million users on its platform, with 70% of its investors coming from Tier 2 and 3 geographies. It has around 2 million users leveraging Groww’s platform to invest in stocks. Groww had launched stock investments on its platform in July, last year.
The company, which counts Sequoia India, Ribbit Capital and Propel Ventures among its backers, recently launched futures and options, investment in initial public offerings (IPO) and sovereign gold bonds on its platform. It was also looking to launch investment in US-based stocks for its investors.
Note: An earlier version of this article mis-stated Groww's consolidated revenue as Rs 404 crore, instead of Rs 40.4 crore. This translates to a 14-old growth, not 140-fold growth. We regret the error.
