- The company had opened the doors to trading in US stocks in November 2020, but only for internet users.
- The company is in talks with banks and other intermediaries to standardize the currency conversion process on their platforms.
- It competes with other unicorns like Zerodha and Upstox as well as the listed company Angle One
The problem, however, is not with Groww but rather with the dependencies that have been created so far.
In a conversation with Business Insider, the co-founder and chief operating officer (COO) of Groww
First, the process of adding capital to a portfolio is quite long and takes up to 2-4 days. A retail investor who first needs to get in touch with the bank to convert their Indian currency to dollars, then the capital can be added to Groww’s stock trading portfolio for foreign stocks.
“The LRS Funding Process [Liberalised Remittance Scheme] and everything is very painful, we are trying to find out if we can solve this problem. If we are able to fix this issue, we are able to scale this offering,” Jain added.
Second, the currency conversion rate charged by banks is very different. “If you use SBI Bank versus HDFC Bank versus Kotak Mahindra Bank, to fund an account to buy US currency, the process is not standardized and there are different charging rates,” he explained. .
Customers have much higher expectations for user experience on the mobile app, Jain added. “Our existing app is by far the smoothest than anyone else in the country when it comes to trading, investing, mutual funds and SIPs. The problem with US stocks is not in our control. We need to work with banks and intermediary companies to find the easiest way to do this,’ he added.
Jain confirmed that the company was in talks with banks and intermediaries to further facilitate the process. The few agendas on the company’s mind right now are implementing a standard currency conversion rate, a simpler funding process, and more.
The company – founded by four former Flipkart employees, Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh in 2016 – claims to have more than 2 million users on its platform, nearly 70% of whom come from the geographies of level II and III.
The company has raised nearly $393 million to date from renowned investors such as Tiger Global, Y Combinator, Sequoia Capital India,
It competes with other unicorns like Zerodha and Upstox as well as the listed company AngleOne. UpStox is another platform that offers US stocks trading in India.
Forbes shows Adani and Ambani are now richer than Facebook’s Mark Zuckerberg
Manyavar IPO Opens Today – See Important Dates and IPO Details