Fintech giant Groww has secured the green light from the Reserve Bank of India (RBI) to function as a payment aggregator, marking a significant milestone for the company. This approval places Groww among the ranks of various fintech enterprises recently authorized by the central bank.

Under the banner of Groww Pay, the UPI payments platform operated by brokerage firm Groww has been granted the license by RBI. This accreditation empowers the firm, backed by Tiger Global and Peak XV Partners, to facilitate a spectrum of e-commerce transactions through its UPI application.

Since its debut in July last year, Groww’s UPI app has extended its services to encompass bill payments, including loan and credit card repayments, utility bills such as electricity and water, and DTH recharges, among others.

The competitive landscape saw Groww outpace its longstanding rival Zerodha for the first time in terms of active users by the close of October last year. Ending 2023 with 7.5 million monthly active users, Groww surged ahead of Zerodha’s 6.7 million and AngelOne’s 5.3 million MAUs.

Valuation-wise, Zerodha led the pack with a valuation of $3.6 billion, trailed by Upstox and Groww at $3.4 billion and $3 billion, respectively.

Adding to its accolades, Groww’s Mutual Fund recently received approval from SEBI to introduce the Nifty Non-Cyclical Consumer Index Fund via a new fund offering (NFO).

According to startup data intelligence platform TheKredible, Groww recorded a remarkable 260% surge in operating revenue to Rs 1,277 crore in FY23. Furthermore, the company transitioned from a Rs 239 crore loss in FY22 to a profit of Rs 448.7 crore.

Reflecting a broader trend among fintech firms, Groww is also contemplating relocating its headquarters to India, as previously reported by Entrackr in May last year. Other firms considering such a move include KreditBee, Pine Labs, Razorpay, Meesho, and Zepto.

Joining Groww in securing a payment aggregator license from RBI is Khatabook, a bookkeeping app and lending platform. RBI had granted in-principle approval to 32 entities, including Khatabook, in March last year to operate as online payment aggregators.

In the latest developments, PayU received in-principle approval from RBI to operate as a payment aggregator. Alongside PayU and Groww, fintech firms Razorpay, Cashfree, Open, EnKash, Juspay, and Infibeam have also been granted PA licenses by the apex banking body.