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Groww Receives RBI Approval to Operate as Payment Aggregator, A Game-Changer in India's Fintech Landscape

Surpassing Giants, Groww Overtakes Zerodha with 7.5 Million Active Users

30 April 2024


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • Groww, a leading fintech unicorn, obtains RBI approval to operate as a payment aggregator, marking a significant milestone in India's fintech sector.

  • The approval allows Groww's UPI payments platform, Groww Pay, to facilitate seamless e-commerce transactions, adding to its array of bill payment services.

  • With exponential user growth, strategic expansions, and stellar financial performance, Groww is poised to redefine India's fintech landscape, driving financial inclusivity and accessibility.

The Indian fintech scene has been abuzz with the recent announcement that Groww, a prominent fintech unicorn, has secured approval from the Reserve Bank of India (RBI) to function as a payment aggregator. This significant milestone marks Groww's entry into a select group of fintech firms bestowed with similar approval by the central bank. The approval, granted to Groww's UPI payments platform, Groww Pay, heralds a new era for the company, empowering it to facilitate e-commerce transactions seamlessly through its innovative UPI app.

Since its inception in July of the previous year, Groww's UPI app has been gaining traction steadily, offering a gamut of bill payment services ranging from loan and credit card repayments to utilities like electricity and water bills, alongside DTH recharge options. The approval from RBI further solidifies Groww's position as a formidable player in India's rapidly evolving fintech landscape.

In a notable turn of events, Groww surpassed its arch rival, Zerodha, for the first time in terms of active users in October of the preceding year. With 7.5 million monthly active users by the end of 2023, Groww's exponential growth trajectory underscores its rising prominence in the fintech realm. Moreover, in terms of valuation, Groww emerged as a strong contender, standing at $3 billion, following closely behind industry leaders like Zerodha and Upstox.

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The regulatory green light from RBI is not the only feather in Groww's cap. Last week, the company's Mutual Fund arm received approval from the Securities and Exchange Board of India (SEBI) to launch the Nifty Non-Cyclical Consumer Index Fund, further diversifying its financial offerings. Such strategic expansions highlight Groww's commitment to catering to the evolving needs of its user base and solidifying its foothold in the market.

The financial performance of Groww in the fiscal year 2023 is equally noteworthy, with a staggering 260% surge in operating revenue, reaching Rs 1,277 crore. More impressively, the company reported a net profit of Rs 448.7 crore, a remarkable turnaround from the Rs 239 crore loss incurred in the previous fiscal year. These stellar financial figures underscore Groww's resilience and ability to capitalize on market opportunities effectively.

As Groww gears up to join the ranks of fintech firms planning to relocate their domicile to India, the company's trajectory seems poised for further expansion and innovation. With its payment aggregator licence in hand and a robust financial performance backing its endeavors, Groww is poised to redefine the contours of India's fintech landscape, ushering in a new era of financial inclusivity and accessibility for millions across the nation.

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