Fintech Startup Gromo Raises $11 Million Funding from SIG Venture Capital and Others

By Shivam Dumda | September 15, 2022

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 organisations is the new tech that improves and automates the delivery and usage of financial services and products. With the aim to help the underserved population in the country, GroMo is one of the leading fintech organisations in the country.

GroMo empowers micro-entrepreneurs by enabling them to serve millions of their customers. Moreover, GroMo has its underlying partnerships with Banks, NBFCs, which helps 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 being the lack of awareness and confidence on financial products that are present in India as compared to other developed countries.

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 make the financial products reach the real Indian citizens and also help them make a handsome amount of money 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 have invested $11 million in Gromo.

Key Challenges

Gromo hires financial advisors, who simply explain a wide range of financial solutions to customers. Similarly, the platform provides them 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 their journey. Some of those key challenges are as follows:

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, in order to carry out the execution successfully you need to travel from one department to another for coordination and constant follow ups.

Account Validation:

While onboarding new members to their site, GroMo relies heavily on bank account verification. GroMo is working towards making the traditional account validation process more streamline 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.

Fundings

GroMo managed to raise an investment of around USD 11 Million (INR 88 crore approximately) 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 fundings from angel investors such as Kunal Shah (Cred), Niraj Singh (Spinny), Ramakant Sharma (Livspace), Alok Mittal (Indifi), Utsav Somani (iSeed, AngelList India), Ashish (Innoven), Abhishek Goyal (Tracxn) and Nitin Gupta (Uni Cards).

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. GroMo also plans to build new partnerships with BFSI players which includes 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.

 

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