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Complete SWOT Analysis of Groww – An Online Investment Platform

by | Case Studies | 0 comments

Previously we saw the SWOT analysis of Metlife. In this article, we are going to see about the SWOT Analysis of Groww – one of the best online investment platforms where users can find the best mutual funds for them to invest their money without any difficulty. 

So the main intention of this is to help everyone to gain more knowledge about Groww’s success story from the beginning as a small investment company to an organisation that has made investing a very simple thing for millions of people.

Groww has achieved its success through the marketing it has done. As it is an online application it is very important to do the marketing on all other online platforms so to know more about digital marketing check out our Free Masterclass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

In this blog, we will look at the SWOT analysis of Groww but before that let’s know some facts about the company.

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About Groww

SWOT Analysis of Groww - The 4 Founders of Groww

(The 4 Founders of Groww, Source: TechCrunch)

One of the best mutual funds investment platforms in India – Groww is a Bangalore, India based startup that was established in the year 2016 by the four former employees of Flipkart i.e. Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh with a primary goal to launch the mutual fund investment facility on digital platforms.

The company started its operations through a WhatsApp group and other social media platforms and Groww is grown as a web-based investment platform that helps users to invest in mutual funds and equities. 

The main aim of Groww is to make its investment a very simple, approachable, see-through and computerised form of investment that will help its customers to invest in mutual funds without any struggles. This company has more than 20 million registered users that too the majority of the users are below the age of 40. It offers over 5,000 mutual funds that the users can directly invest in through its website and app.

It also features a forthright method of pricing which includes cheap trading fees. In this, the users can also invest freely without any fees and it does not charge for account opening or monthly maintenance costs. To give proper awareness for its users in investing and to make better decisions, it offers resources, E-Books and blogs. A person can very easily open an account and start investing. Investors can submit the online IPO application if they want to participate in the primary market and to hold the shares of the company.

 

Quick Stats on Groww
Founder Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh
Year Founded 2016
Origin Bangalore, India
No. of Employees 590+
Company Type Financial Technology
Market Cap $1 Billion Valuation
Annual Revenue ₹40.4 Crore (2021)
Net Income/ Profit ₹2.72 Crore (2021)

 

SWOT Analysis of Groww - Groww


Services by Groww

  • Mutual funds
  • Stocks 
  • Invest in FD
  • US Stocks 
  • Demat accounts


Competitors of Groww

Groww has a lot of competitors in all places with other online investing platforms. The top competitors for the company are:

  • Kredx
  • NPEX
  • FundersClub
  • Yielders
  • Etmoney 


Now that we understand the company’s core business, let’s delve into the SWOT analysis of Groww.


SWOT Analysis of Groww

A SWOT analysis determines the strengths, weaknesses, opportunities, and threats of an employer. It is a confirmed control paradigm that permits Groww to benchmark its enterprise and overall performance towards that of its competition and the enterprise as a whole.

This is a tremendous device for figuring out in which the enterprise is doing well, in which it’s miles failing, growing countermeasures, and figuring out how the enterprise can grow.

To higher apprehend the SWOT Analysis of Groww, check with the infographics photo below

SWOT Analysis of Groww - SWOT Infographics of Groww

Now first let’s start with the strengths of the employer from the SWOT analysis of Groww.

Strengths of Groww

  • Low-cost Trading: Financial services are supplied remotely via the internet. The organization keeps operational costs low by using an online business model. It offers free direct investments in mutual funds, stocks, initial public offerings, digital gold, and exchange-traded funds.
  • Big Fundings & Support: Big companies like Insignia Ventures Partners, Lightbridge Partners, Kairos and others have invested in Groww, making it a safe and reputable online investment platform.
  • Advance Technology: Investors with web/desktop, Android, and iOS software systems can use Groww’s HTML-based trading solutions. The corporation has made major technological investments. It offers its consumers an outstanding trading platform and tools.
  • Reducing Costs: Groww likewise feels that word-of-mouth referrals are the most effective approach to expand its business. As a result, unwanted marketing costs are avoided. Instead, it assumes that happy consumers will naturally refer to their friends. That is why Groww places a higher value on technology and customer service.
  • Marketing Strategy: Groww started its operations through a WhatsApp group and other social media platforms engaging with members on topics relating to investing and wealth management.


Weaknesses of Groww

Weaknesses are the areas Groww can work upon. Some of Groww’s weaknesses are:

  • Few Employees: The number of employees in the company is very low. As the company is getting bigger day by day it is not possible to handle with fewer employees. 
  • Limited Services: Groww has fallen short of delivering several services or features that its competitors provide. Some of these include making IPO and FPO investments; moreover, it does not provide API access for automated trading.
  • Research & Development: Because the company did not spend wisely on research and development, demand forecasting gaps and opportunities were overlooked.
  • Lack of Knowledge: There are still people who are unaware of trading in various sections of the country. It does not provide stock recommendations or ideas, which could make a beginner trader’s experience more difficult.
  • Customer Service: Because the platform is entirely online, there is no personal relationship manager and no research advisory service. It also does not provide a 24/7 customer support service.
  • Competition: Mutual funds and stocks trading is a competitive market. Firms are up against fierce rivalry, which is inherent in every business. Groww must focus on overcoming the strain of competition and standing out from the crowd.


Opportunities for Groww
 

Opportunities are uncontrollable external circumstances that a person may be able to take advantage of. These external factors could give the company an advantage in the marketplace. Opportunities for Groww are:

  • Increased Customer Base: Groww has attracted many investors, and with increased exposure, there are impending opportunities for client base expansion.
  • Market Research: By thoroughly researching market circumstances, the company may take advantage of the opportunity to provide customized mutual funds and brokerage services while also improving the existing investor experience.
  • Awareness: With shifting educational reforms and government regulations aimed at educating investors and raising trading awareness among the general public, there is a growing opportunity for mutual funds and stock brokerage firms.
  • Bullish Markets: Because every investor is drawn to bullish markets, they provide a good opportunity for firms.
  • Digital Gold: The company offers a new plan of investing in digital gold. As all the other companies will be focusing on hand-gold, this company is focusing on this type of investment which is going to be fruitful in future.
  • Online IPO: Groww offers an online IPO application that can be filled and sent to the company. The company can launch an IPO that will display on the website and people can apply online.


Threats to Groww

Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of Groww are as follows:

  • Government Policies: Government policies change regularly in different countries. Furthermore, political upheaval in the country might disrupt trading cycles and negatively affect stock markets.
  • Online Substitutes: Because firms can enter and quit an industry with few limitations, the number of substitutes in the same product line at different prices poses a risk of losing the investor base.
  • Digital Frauds: With the advancement of the digital era, there has been an increase in the number of occurrences of cybercrime. Because the firm’s operations are conducted entirely online, there is a greater risk of fraud and the loss of the personal information of investors.
  • Foreign Firms: Foreign companies tend to attract local investors, putting pressure on Indian companies to lose market share.
  • Bearish Market: The inherent nature of stock markets poses the greatest danger to stockbroker companies like Groww. Bearish market conditions pose a significant risk because no investor wants to trade in such circumstances.


This ends our complete SWOT analysis of Groww. Let us conclude our learning below.

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To Conclude

Groww is a well known online investment trader that provides lots of products for investors to invest in. In the SWOT Analysis of Groww, it is observed that the company has a lot of investors to invest in it and also a well-recognised brand in the online investment category for its free and low cost on opening the accounts and investing. 

As a developed company it is common to face debts and lots of competitors in the market but some actions have to be taken for the company to maintain its standard.

As most people are moving to online investments and lots of competitors are emerging in the industry it is very important to have a proper marketing strategy for the company to pull the customers to invest in its company. For this digital marketing plays a major role to market the company on online platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.

We hope this blog on the SWOT Analysis of Groww has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. 

If you enjoy in-depth company research just like the SWOT analysis of Groww, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Groww in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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