Fintech unicorn Groww’s NBFC arm, Groww Creditserv, has reported an impressive growth of 31% in its loan book for the quarter ending June 2024. The company’s total on-balance sheet loan book stood at INR 965.44 crore, up from INR 731.1 crore as of March 31, 2024, according to a report by ICRA.
Breakdown of Loan Book
Breakdown of Loan Book
As per ICRA, personal loans dominated Groww Creditserv’s loan portfolio, accounting for 98% of the total, while consumer durable loans made up the remaining 2%. Groww Creditserv, incorporated in January 2021, obtained its NBFC licence from the Reserve Bank of India (RBI) in late 2022 and offers loans exclusively to Groww’s existing customer base.
Company Background and Financial Performance
Company Background and Financial Performance
Groww Credit Serve is a fully owned subsidiary of Billion Brains Garage Ventures Private Limited, Groww’s India entity. The NBFC saw a total capital infusion of INR 378 crore by March 31, 2024, and reported a net worth of INR 351 crore during the same period.
Despite its growing loan portfolio, Groww Creditserv faced a loss of INR 24.1 crore in FY24, a steep rise compared to a loss of INR 2.8 crore in FY23. Meanwhile, its parent company, Groww, has seen considerable financial improvement, posting a net profit of INR 448.7 crore in FY23, bouncing back from a loss of INR 239 crore in FY22.
What’s Next for Groww Credit Serv?
What’s Next for Groww Credit Serv?
As Groww Creditserv continues to expand its loan book and navigate its financial challenges, the company is expected to focus on improving its margins and operational efficiency in the coming quarters. With the fintech sector growing rapidly, it will be interesting to see how this NBFC evolves in the competitive market.
What do you think? Will Groww Creditserv’s financials improve in the next quarter, or will the challenges continue to rise? Share your thoughts!
