Monday, January 30, 2023
Outlook.com
Outlook India
Outlook Business
+

Groww Acquires Minority Stake In Fintech Start-up Digio

Last year, Groww invested in SaaS start-up Hyperface and acquired Indiabulls’ mutual fund business to expand its investment footprint

Groww Acquires Minority Stake In Fintech Start-up Digio
POSTED ON January 13, 2023 12:32 PM

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.  

  • Related Articles

    The company will utilise the capital to strengthen its research and development capabilities

    EV Start-Up Entuple Raises $3 Million

    Chasing profitability, the start-up has also shut down verticals including infotainment service Ola Play, used-cars platform Ola Cars, and quick-commerce vertical Ola Dash

    Ola Lays Off 200 Employees Across Verticals In Restructuring Exercise: Report

    In December alone, UPI achieved a record of 782.9 crore digital payment transactions with a value of Rs 12.82 lakh crore

    Cabinet Clears Rs 2,600 Crore Scheme To Promote RuPay Debit Card, Low-Value BHIM-UPI Transactions