Semiconductors Are My Latest Crush, Says Groww Investor Ashish Agrawal in a Deep-Dive on Peak XV’s Long-Hold Strategy

Contents

Why Peak XV Stayed Invested Despite Multiple Exit Opportunities How Groww Stood Out in a Market Dominated by Established Players Backing Millennials Before They Became India’s Core Investors Staying Prepared for Public Markets Years Before Listing Navigating Competition, Cycles, and Regulatory Shifts Strategic Decisions That Set Groww Up for Long-Term Success Peak XV’s Future Bets: Why Semiconductors Are Agrawal’s “Latest Crush”A New Growth Cycle Begins

In a conversation that blends sharp investment insights with a decade-long view of India’s evolving tech landscape, “Semiconductors are my latest crush,” says Groww investor Ashish Agrawal, Managing Director at Peak XV Partners. His comment comes at a defining moment for the firm, which now sits on one of the largest stakes in India’s newest publicly listed tech company. The conviction behind this multi-year commitment, the lessons from Groww’s explosive scale-up, and the sectors the firm is betting on next collectively offer a rare look into India’s venture capital mindset.

Seven years after Peak XV wrote its first cheque to the wealth-tech startup, Groww has become a public-market success. The firm’s 17% stake, valued at Rs 13,700 crore ($1.5 billion) at listing, reflects not only robust company growth but also Peak XV’s uncommon willingness to hold long-term positions in India’s tech ecosystem. Despite multiple opportunities to cash out during up-rounds, the fund exited only the portion mandated by regulations, selling Rs 1,583 crore ($178 million) in the offer-for-sale.

With an initial investment of $30–35 million, Peak XV has pocketed 50x-plus returns—one of the strongest outcomes in modern Indian venture capital.

Why Peak XV Stayed Invested Despite Multiple Exit Opportunities

Explaining the mindset behind the decision, Agrawal said the holding period wasn’t truly long by Peak XV’s standards. “It has been just about seven years… we view ourselves as long-term partners,” he said. The firm strongly believed that Groww was building in a deep, expanding market where wealth management and investing habits were going to compound for decades.

This conviction played a critical role in resisting early exits. Groww’s disciplined management, strong founder ownership, and customer-first approach further reinforced Peak XV’s choice to stay fully invested. The firm believes the company still has tremendous potential for long-term value creation, even after its IPO milestone.

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How Groww Stood Out in a Market Dominated by Established Players

Even when Groww entered the market, giants like Zerodha and big banks had a strong foothold. But the founders’ clarity and product-first mindset impressed Peak XV early. Groww launched as a distributor of direct mutual funds—an underserved category at the time.

Agrawal recalls that investing in India lacked the consumer-friendly experience that users enjoyed on platforms like ride-hailing and e-commerce. High brokerage fees and distributor commissions further burdened new investors. Groww’s intuitive design, tech-focused DNA, and early obsession with millennial investors filled a critical market gap.

Their initial wedge category—direct mutual funds—has since grown significantly, with SIP penetration climbing from 17–18% to the mid-30s today.

Backing Millennials Before They Became India’s Core Investors

Agrawal emphasized that Groww’s early focus on millennials, who had limited investible income in 2017, was not a gamble but a strategic bet. Young investors typically stay loyal to platforms that help them enter markets, and as their incomes rise, they become long-term high-value customers.

This thesis has played out over the years as millennials matured financially and adopted long-term wealth-building habits. Groww later expanded into brokerage, wealth management, asset management, and even NBFC-led credit products—scaling in sync with consumer maturity.

Staying Prepared for Public Markets Years Before Listing

One of Agrawal’s central insights is that readiness for public markets cannot be built overnight. Groww began preparing its systems, governance, and team mindset years in advance. Stability, predictable financial reporting, and founder maturity were crucial elements.

He argues that founders should view public listings not as a constraint but as the natural endgame for enduring companies. “The best public companies make the right long-term decisions,” he said, adding that quarterly reporting should enable governance, not hinder innovation.

Navigating Competition, Cycles, and Regulatory Shifts

When asked about competition from players like Zerodha and Angel One—especially amid recent SEBI regulations—Agrawal remained confident. Markets are cyclical, he noted. Investor behavior changes, products trend in phases, and regulations evolve. Groww’s strength lies in offering a full suite of products, letting consumers choose what suits them.

Despite numerous players in mutual funds, broking, wealth management, and asset management, Agrawal believes the winners will always be the platforms that remain frugal, governance-driven, and deeply customer-focused.

Strategic Decisions That Set Groww Up for Long-Term Success

Some of Groww’s most important decisions were taken early with Peak XV as a close partner. These included entering direct mutual funds, launching brokerage, acquiring Indiabulls AMC, expanding through Fisdom, and entering the credit space via an NBFC.

Each move strengthened its position in India’s rapidly growing investor ecosystem.

Peak XV’s Future Bets: Why Semiconductors Are Agrawal’s “Latest Crush”

As the conversation turned to what’s next, the focus keyword came alive: “Semiconductors are my latest crush, says Groww investor Ashish Agrawal.”

Agrawal highlighted that India holds 20–30% of global chip design talent, making semiconductors one of the most compelling opportunities ahead. Alongside semiconductors, Peak XV continues to invest across fintech, AI-driven software, consumer brands, and companies serving both domestic and global markets.

These investments reflect two core pillars:
1. Businesses serving India’s massive domestic population
2. India-built companies serving global markets

A New Growth Cycle Begins

For Agrawal, the story of Groww is not an ending but “day zero of the next chapter.” The lessons—humility, governance, customer obsession, and long-term thinking—are principles he believes will define India’s next generation of legendary startups.