Financial service platform, Groww has acquired a minority stake in fintech software as a service (SaaS) start-up Digio, VCCircle reported.
“In 2016, Zerodha’s investment arm Rainmatter invested in Digio as a seed fund. The company is well capitalised with its own profits, and with Groww investing in Digio, the company would have two largest broking platforms in the country as its backers,” said Abhinav Parashar, co-founder of Digio in a media statement.
Founded in 2016 by Abhinav Parashar and Sanket Nayak, Digio offers the digital infrastructure to businesses for identity verification, electronic signing, and collecting recurring payments.
The platform can be accessed by banks, non-bank lenders, brokerage firms, fintech players, and asset management firms.
In 2022, Digio received the Reserve Bank of India’s in-principle approval to work as an account aggregator (AA) and payments aggregator.
And in 2016, Digio raised funding of $375 thousand from Zerodha's Rainmatter. The company has been profitable for the last five fiscal years, the report added.
Digio reported a net profit of Rs 24 crore and a revenue of nearly Rs 83 crore in the financial year 2021-22 (FY22).
Founded in 2016 by former Flipkart executives Neeraj Singh, Harsh Jain, Lalit Keshre and Ishan Bansal, Groww is a wealthtech start-up that allows its customers to invest in stocks, direct mutual funds, exchange-traded funds (ETFs), and initial public offerings (IPOs). The platform also provides tools to analyse the performance of stocks and investment portfolios.
Previously, Groww invested in Bengaluru-based fintech SaaS start-up Hyperface in July and Indiabulls’ mutual fund in September with an aim to expand its investment products.
In October 2021, Groww raised $251 million in a Series D funding round led by ICONIQ Growth. The funding round also saw participation from Alkeon, Lone Pine Capital, Steadfast, and existing investors Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global, and Propel Venture Partners.