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Groww's Growth Spurt: RBI Approval Paves Way for Payment Aggregator Role



Fintech giant Groww has been granted approval by the Reserve Bank of India to function as a payment aggregator, joining a growing list of fintechs with similar approvals. The license is for Groww Pay, the UPI payments platform of the brokerage firm Groww, which is backed by Tiger Global and Peak XV Partners. This approval allows Groww to facilitate e-commerce transactions through its UPI app.

The UPI app, launched in July last year, offers bill payment services including loan and credit card repayments, electricity and water bills, and DTH recharges, among others.

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

Recently, Groww's Mutual Fund also received SEBI's approval to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO).

Groww saw a significant increase in operating revenue, jumping over 260% to Rs 1,277 crore in FY23. The company also reported a profit of Rs 448.7 crore, compared to a loss of Rs 239 crore in FY22.

Along with Groww, the bookkeeping app and lending platform Khatabook also received a payment aggregator license from the 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 the RBI to operate as a payment aggregator. Other fintech firms such as Razorpay, Cashfree, Open, EnKash, Juspay, and Infibeam have also received payment aggregator licenses from the RBI.

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