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Simple investing platform: Groww business model

Groww business model
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With the emergence of varied online services, broking firms have also brought in online investing services for the users. As earlier, the investors have to make a call to the investment brokers for making their monetary transactions. Now with the existence of online investing portals, they can explore different financial instruments that can be mutual funds, commodities, stocks, ETFs, and bonds. Can also make buying or selling calls in a matter of seconds without directly engaging with the broker.




Now with the arrival of these online services, investing is quite convenient and transparent. But still, many of the users face trouble at buying financial instruments online. So, to propose a simple investing platform for all the aspirants Groww comes in as an online investment service provider. And very soon it created a valuable spot among various online broking firms. And today, we will bring your attention to the Groww business model and solve curious questions such as is Groww app safe and the Groww app charges.



About: Groww

Groww is legally registered as Nextbillion technology private limited and was established in the year 2017 with the aim of delivering a convenient platform for retail investors. The founders of the company believe that there are emerging millennials who are willing to infuse their money into financial instruments. But, are tackling with platforms that are complex and come with a confusing interface.



They bring in a solution by introducing a user-friendly interface in its application and named it Groww. Groww kicked off its journey by featuring mutual funds at an initial stage and later showcase with all the major services that are provided by financial firms. These features now allow one to procure stocks, do stock trading, buy mutual funds, and commodities from one single portal. 



Groww was a very new player in the game of online broking since the market was dominated by various strong companies before its arrival. Angel broking, Zerodha, Upstox, etc were some of the prominent financial service providers that had captured most of the Indian market share. On the other hand, Groww being a new platform took time for creating a customer base but because of its simple investing procedures, it easily attracted the masses at a faster pace.


In 2017, it become popular for its direct mutual fund feature that helped in boosting most of the company's revenue. Groww facilitates retail investors to inject their money into varied services offered by them and their services & transections performed on their platform are safe. As they are registered under norms of SEBI (securities and exchange board of India). 



Let us limelight into the main heading that is the Groww business model.



Groww business model

Groww business model offers the investors to open a Demat & trading for free of cost and also does not charge annual maintenance charges like other brokerage firms. Also, they charge a minimal cost for all equity trades and deliveries in form of brokerage which stands nearly around Rs. 20 or 0.05% of the order whichever is lower. The revenue generation is totally based on the large number of stock trades done on a regular basis. Since it has a great customer base of around 10 million-plus users, Groww is able to generate good revenue.




The services offered by Groww are carried out from the official application or website. The application depicts all the services under one roof by offering a clear and easy dashboard for stocks, mutual funds, and gold. The beginner investors find the interface very convenient to use as they find it uncomplicated and relatively easy to use. Apart from the application service, Groww believes in updating its users with valuable information related to investments, stocks, mutual funds, and general investment terminologies. So, they have come up with their blog and a youtube channel that helps in informative data updation.




These free Vlog and blog updates not only work as a guide to the readers but also boost the services offered by them. It is a clear strategy of marketing and promotion of services and the brand name as well. The free content sharing with people has really influenced them to join Groww as their investment buddy and initiate their investment journey.



Groww app charges 

In the above heading about the Groww business model, we have touched a brief about the Groww app charges but now we will dive deep into detail. The main charges outlay includes DP charges, STT, stamp duty, SEBI turnover charges, and exchange transaction charges. 



These expenses are levied on the stock delivery and trades performed by the retail investors. Also, the amount of charges may vary with the type of investment approach followed by the individual and also based on the volume of stock traded. We are not sharing the exact amount since the charges are subject to change by the stockbrokers.


Is Groww app safe?

The answer to this question is really important since the users are staking their hard-earned money and they must have safety concerns. Yes, the Groww app is completely safe as it is registered with SEBI and fulfills all the norms that are set up by the regulatory body of the Indian financial system. 


And for the concern and support of its users, they have attached a support system. In which one can enquire about their queries and troubles if occur by calling them or raising an online ticket for easy resolution of issues faced.



Take away

From the article above we got know-how about the working structure and the features offered by the Groww app. Soon, we analyze the Groww business model and also derive knowledge about the earning model of this broking entity. Looking into safety and charges we pointed out the topics like Groww app charges and Is Groww app safe for investing?


All in all, we derive that it is an ideal investment and trading platform for users who are seeking an easy mode of investment. The interface offered by them is really simple and allows the users to easily explore varied services offered by them.