GroMo Funding: Fintech Startup GroMo Raises $11 Million
GroMo Funding: In a funding round, GroMo raised approximately $11 Mn. (~ ₹88 Cr.) from SIG Venture Capital. GroMo was founded in 2019.
In the 21st century when fintech came into existence, the term was initially applied to the technology that was employed at the back-end systems of established financial institutions. However, there has been a shift to more consumer-oriented services since then.
Fintech organizations are the new technology that improves and automates the delivery and usage of financial services and products. To help the underserved population in the country, GroMo is one of the leading fintech organizations in India.
GroMo empowers micro-entrepreneurs by enabling them to serve millions of their customers. Moreover, GroMo has underlying partnerships with banks and Non-Banking Financial Companies (NBFCs), which help in creating a seamless pipeline of financial products such as loans, cards, and insurance.
However, when it comes to investment, there is a huge difference between India and other countries. The biggest difference is the lack of awareness and trust in financial products that are present in India as compared to other developed countries.
If you want to become a successful Financial Advisor, then check out the GroMo App right now. It provides training for becoming a Certified Financial Advisor and also has various financial products that you can sell.
GroMo aims to improve things by better penetration of financial products in India. GroMo was incorporated in 2019 by IIT Delhi alumni Ankit Khandelwal and Darpan Khurana.
The company aims to empower lakhs of micro-entrepreneurs to increase the reach of financial products in the Real Bharat. And not just this, by doing so, GroMo also helps them earn a #PakkikIncome just by simply referring financial products in their network.
To empower their mission, SIG Venture Capital along with Y-Combinator, Das Capital, Goodwater Capital, Beyond Next Ventures, Soma Capital, Ace & Company, and Hauz Khas Ventures has invested $11 million in GroMo.
Key Challenges
GroMo helps people become financial advisors through its GroMo Academy (available on the GroMo App) and provides them with financial products to sell to their customers using the GroMo App.
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GroMo provides financial advisors with everything they need to gain additional customers and also assists their financial advisers in creating personal websites, posters, and visiting cards.
Moreover, it also delivers the best possible deals to these advisors when they enter customer and product details. However, things were not as easy from the beginning, the company has faced numerous challenges throughout its journey. Some of those key challenges are as follows:
1. Bank Integrations
At first, it might appear simple to integrate with a bank to provide financial services within a platform, however, it can be a challenging task. In today’s time, any integration between a bank and any such financial institution can take anywhere between 2 to 3 months.
Not just that but the integration cycles are made more difficult by heavy paperwork and approvals. Along with that, to carry out the execution successfully you need to travel from one department to another for coordination and constant follow-ups.
If you are a Financial Advisor and want to sell trusted financial products of big brands, then download the GroMo App today and start your journey of earning up to ₹1 Lakh every month.
2. Account Validation
While onboarding new members to their application, GroMo relies heavily on bank account verification. GroMo is working towards making the traditional account validation process more streamlined for their customers. The traditional method involved manually collecting KYC paperwork and validating bank accounts (through their corporate banking portal). This required a huge amount of unnecessary human effort and working hours.
3. Fundings
GroMo managed to raise an investment of around USD 11 Million (~₹88 crore) in a funding round led by SIG Venture Capital on Tuesday. Along with SIG Venture Capital, Y-Combinator, Das Capital, Goodwater Capital, Beyond Next Ventures, Soma Capital, Ace & Company, and Hauz Khas Ventures were the other companies that were a part of the investment panel.
Earlier GroMo has managed to also receive funding from angel investors such as Kunal Shah (Cred), Niraj Singh (Spinny), Ramakant Sharma (Livspace), Alok Mittal (Indifi), Utsav Somani (iSeed, AngelList India), Ashish (Innoven), Nitin Gupta (Uni Cards) and Abhishek Goyal (Tracxn).
In a recent interview, the company released a statement stating that it would use the capital to hire senior-level executives in various fields including technology, product, marketing, business, category management, and HR functions.
The company also stated that they plan to double their headcount in the upcoming 6-12 months.
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GroMo also plans to build new partnerships with BFSI players which include Insurance companies, Credit Card companies, Banks, Stockbrokers, NBFCs, and others. Moreover, this is just the tip of the iceberg, and a whole new era with a lot more possibilities is yet to be explored in the upcoming years.
Key Takeaways
- One of the top fintech companies in India, GroMo's mission is to serve the underprivileged people in the country.
- The GroMo Academy on the GroMo App makes it easy for people to become financial advisors and sell financial products to their customers.
- Integrating with a bank to offer financial services on a platform may seem easy at first, but it can be difficult.
- When GroMo welcomes new members to their application, they rely heavily on bank account authentication.
- In a funding round, GroMo raised approximately $11 Million (approximately ₹88 crore) from SIG Venture Capital.
