Groww gets RBI Nod for Payment Aggregator

Fintech unicorn Groww has secured approval from the Reserve Bank of India (RBI) to function as a payment aggregator. This milestone marks Groww’s entry into a league of fintech companies recently greenlit by the central bank for similar operations.

The license, granted to Groww Pay, the UPI payments platform of broking firm Groww, enables the Tiger Global and Peak XV Partners-backed company to facilitate e-commerce transactions through its UPI app.

Launched in July last year, Groww’s UPI app offers a range of bill payment services, including loan and credit card repayments, utility bill payments such as electricity and water bills, and DTH recharges.

In October of the same year, Groww surpassed its rival Zerodha for the first time in terms of active users, ending 2023 with 7.5 million monthly active users, compared to Zerodha’s 6.7 million and AngelOne’s 5.3 million. Regarding valuation, Zerodha led with $3.6 billion, followed by Upstox and Groww with $3.4 billion and $3 billion, respectively.

Last week, Groww’s Mutual Fund received approval from the Securities and Exchange Board of India (SEBI) to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO).

According to startup data intelligence platform TheKredible, Groww witnessed a staggering 260% surge in operating revenue to Rs 1,277 crore in FY23, posting a profit of Rs 448.7 crore compared to a loss of Rs 239 crore in FY22.

Like several other fintech companies, Groww is planning to shift its domicile to India. Notably, other companies on the list include KreditBee, Pine Labs, Razorpay, Meesho, and Zepto.

In addition to Groww, the bookkeeping app and lending platform Khatabook also obtained a payment aggregator license from RBI. In March last year, RBI granted in-principle approval to 32 entities, including Khatabook, to operate as online payment aggregators.

Most recently, PayU received in-principle approval from RBI to function as a payment aggregator. Alongside PayU and Groww, fintech firms Razorpay, Cashfree, Open, EnKash, Juspay, and Infibeam have also received payment aggregator licenses from the apex banking body.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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