Groww still figuring out how to properly offer US stock trading to Indian investors

Rick Steves

“Our existing app is by far the smoother than anyone in the country when it comes to trading, investing, mutual funds and SIPs. The problem with US Stocks is not under our control. We have to work with banks and intermediary companies to find the easiest way of doing that.”

Groww, which has opened doors to US stock trading for web users in November 2020, hasn’t been able to bring that offering to its wider use base trading via mobile.

Based in Bangalore, India, the trading platform competes with other high growth fintech firm including Zerodha, Upstox, and Angle One, and is trying to solve a number of issues including the standardization of currency conversion on the platform.

Issues with funding and FX rates hurting broker

Groww’s co-founder and chief operations officer (COO) Harsh Jain told Business Insier the problem is not on Groww’s end but rather on dependencies that have been created so far, including the issues with funding an account which takes up to 2-4 days.

“The process of funding through the LRS [Liberalised Remittance Scheme] and everything is very painful, we are figuring out if we can solve that problem. If we are able to solve that problem, we are able to scale that offering.”

In India, the retail investor has to get in touch with the bank to convert his Indian currency to dollars. Only then, the capital can be added to Groww’s stock trading wallet for foreign stocks.

Another issue is the different currency conversion rate charged by banks. “If you are using SBI Bank versus HDFC Bank versus Kotak Mahindra Bank, for you to fund an account for buying US currency, the process is not standardized and there are different charging rates”, the chief operations officer added.

The team at Groww grows frustrated at how they can’t solve the issues right away as customers have much higher expectations of user experience on the mobile app. The company is trying to further smoothen the processes, setting a standard currency conversion rate, and provide a simpler funding process.

“Our existing app is by far the smoother than anyone in the country when it comes to trading, investing, mutual funds and SIPs. The problem with US Stocks is not under our control. We have to work with banks and intermediary companies to find the easiest way of doing that”.

Groww has reportedly more than 2 million users on its platform, with nearly 70% of them coming from Tier II and III geographies, and has raised nearly $393 million to date from Tiger Global, Y Combinator, Sequoia Capital India, Ribbit Capital, and others. The firm is currently valued at $3 billion in October 2021.

Read this next

Digital Assets

Alameda sues Voyager Digital to recover $445 million

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Metaverse Gaming NFT

Toyota taps Astar Network to explore Web3 in grand style

Although the crypto ecosystem has faced its fair share of bumps, Japanese automaker Toyota is seemingly bullish about the space and continue to look at Web3 as a promising opportunity.

Digital Assets

Bitcoin dominates inflows into crypto funds, AuM hits $28B

As the price of bitcoin continues to consolidate around recent highs, investors expand their positions in funds designed to profit from further appreciation in the cryptocurrency.

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.

Opinion

It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”

<