Groww gets into corporate bond distribution, set to apply for Sebi licence
Bengaluru-based
stockbroker
Groww is looking to apply for an Online Bond Platform Provider (OBPP) licence and expand into offering corporate bond transactions through its mobile app, according to two people in the know.
Groww, a Sebi-regulated stockbroker, already offers primary sale of freshly listed
corporate bonds
and will expand into offering trades in corporate bonds once it secures an OBPP licence, the people said.
This is part of the company's broader strategy to go beyond core stockbroking services and become a full-stack
financial services platform
. From credit to
wealth management
and now
bond distribution
,
Groww
is slowly expanding its product suite as it prepares for a
public listing
.
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This move will enable Groww to compete with other OBPPs, including Wint Wealth and Grip Invest. These platforms offer listed bonds through their mobile applications. These instruments are a more secured asset class than equity investments and typically offer higher rates of interest than banks' fixed deposits.
'The company has just started rolling out this product for its customers. More features will be rolled out eventually, this is part of Groww's larger strategy of expanding into deeper financial services products,' said a person in the know.
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The company did not comment.
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Groww's bid to diversify its business comes at a time when the Peak XV Partners-backed startup is waiting for a Sebi nod to list on the exchanges. In May, Groww filed its
draft red herring prospectus with Sebi
through the confidential route, seeking to raise between $700 million to a billion dollars in fresh capital. The company recently
closed a $250 million
funding round led by
GIC
at a valuation of around $6.5 billion. It closed FY25 with
total revenue of Rs 4,056 crore
and a net profit of Rs 1,819 crore.
Groww, which started as a direct mutual fund platform, has been offering stockbroking and credit services in recent years. The fintech startup secured a non-banking finance company (NBFC) licence from the Reserve Bank of India to launch products such as consumer loans, personal loans and others.
Recently, Groww closed the
acquisition of Fisdom
, which enables it to get into the lucrative wealth management space and compete with the likes of Dezerv and Ionic Capital. Last year, Groww also opened
margin trade funding
for its investors.
With an OBPP licence, Groww will also get into bond distribution, a market that has been seeing a major increase in
retail participation
in recent times. However, the recent defaults by
BluSmart
and other prominent startups has dampened some of the enthusiasm in the corporate bond market, with investors becoming wary of taking risky bets.
Still, a large chunk of consumers is looking for more avenues to diversify their investments, and corporate bonds represent a major opportunity for them.
The sector has also seen major interest from venture capital funds. Wint Wealth secured funding from Zerodha's Rainmatter, Eight Road Ventures, 3One4 Capital and others. Grip Invest is backed by Venture Highway and others.
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