Groww now lets you invest in US stocks
What's the story
Groww, a leading Indian investment platform, has started rolling out its new feature for US stock investing. The move comes as part of the company's strategy to leverage the growing retail interest in global artificial intelligence (AI) and technology sectors. The feature was launched last week and is expected to be available for all users within a month.
Strategic alliance
Groww partners with US brokerage Alpaca Securities
To facilitate this new offering, Groww has partnered with Alpaca Securities, a US brokerage infrastructure provider.
The company had earlier received an International Financial Services Centres Authority (IFSCA) license for global investing through GIFT City in July.
This strategic alliance is seen as a major step toward expanding Groww's investment services beyond Indian markets.
Investment opportunities
Users can invest in high-value stocks through fractional investing
The new US stock investing feature on the Groww app allows users to buy and sell shares of US-listed companies.
It also supports fractional investing, giving users the opportunity to invest in high-value stocks with a smaller amount of money.
The platform provides access to more than 10,000 stocks and ETFs, including major tech giants like Google, Apple, NVIDIA, and Tesla, among others.
Market expansion
Groww diversifies product offerings to reduce dependence on F&O trading
With the launch of this new feature, Groww is entering a market that has been dominated by platforms like IndMoney, Smallcase, and Vested Finance.
The Bengaluru-based company has been diversifying its product offerings to reduce dependence on futures and options (F&O) trading.
Over the past year, it has launched commodities trading and mutual funds while expanding its margin trading facility (MTF).
Market response
Global investing gains momentum among Indian retail investors
The launch of the global investing feature comes as US stocks and international investing have gained traction due to AI-led rallies in the US, Taiwan, and South Korea.
The lack of investment opportunities in fast-growing sectors like semiconductors, electric vehicles, and space has also pushed many Indian investors toward global markets.
The interest has been further fueled by a depreciating rupee, a robust US IPO pipeline, and Nasdaq's impressive 40% returns over the last year.