Groww to discontinue US stocks offering, tells subscribers to wrap up withdrawals by June 30: Report  (2024)

Financial services platform Groww has recently told it subscribers that it won't be offering its US stocks investment service from the end of February. In a recent communication to customers, Groww said that new investments in US stocks would cease after February 27, 2024. It said that customers will not be able to add funds to their US dollar wallets beyond this date.

The broker, which is the largest stock broker by volume in India at present, told its customers that all withdrawals would be stopped after March 31, 2024. The investors can either withdraw their funds before the said deadline or transfer their holdings to another US broker. Groww later extended this deadline to June 30, 2024, Livemint reported on Tuesday.

In the email, Groww said that due to certain complications, such as adding USD funds, high withdrawal fees, frequent downtimes, and delays in money settlement, have arisen in the ecosystem since it launched the facility for its users to invest in US stocks.

“These factors are unfortunately beyond our control… and hinder the customer experience that Groww stands for,” the startup said in the email.

It is to be noted that Groww stopped providing the option to invest in US stocks for new users almost one year ago. This recent decision will only affect a small portion of its user base.

Earlier in the day, after the market opened on Tuesday following a two-day break, Groww's app experienced login issues with a message stating "Something went wrong".

Several clients took to X, formerly Twitter, to highlight their plight. While they demanded compensation, Groww's X account responded that the team was resolving a technical issue.

An angry user wrote on X: "Stop misleading people and solve the problem immediately. And the loss that has been caused to the people will also have to be returned."

"We apologize for the inconvenience. Our team is addressing a technical issue and working to resolve it promptly. Your patience is highly appreciated, and we'll be back to normal operations shortly," Groww said on X.

Later, Growwnoted that the matter was resolved.

In October 2023, Groww overtook Zerodha to become the top brokerage in India based on the number of active investors. According to the most recent data, Groww currently has 76 lakh active clients, whereas Zerodha has 67.3 lakh.