Lalit Keshre, the co-founder and CEO of stockbroking platform Groww, addressed the recent technical glitch that affected the platform’s operations and said there was misinformation around the company’s stance on US stock investments.
What Happened: On 25th January, Keshre took to X (formerly Twitter) to inform and apologise for the recent downtime the Groww app faced on 23rd January, rendering many customers unable to use the service for about an hour.
“Technical issues happen in our industry, and we have also faced them in the past; the last major one was on April 6, 2023. And each one of them still hurts and remains like a scar. However, this time, it hurt a lot more,” Keshre stated in his tweet.
The CEO acknowledged that the company could have been more proactive in communicating the issue with its customers. “We sincerely apologise for not doing this as well as you expected us,” he admitted.
Zerodha, the country’s second-largest broker, had also experienced similar issues in early December, resulting in public outrage as well.
Why It Matters: Keshre emphasised the company’s commitment to invest heavily in building a robust system with the largest engineering team dedicated to this cause. A new parallel system is also being developed that can act as a fallback in such extreme circumstances.
Keshre also addressed the spreading “misinformation” regarding Groww stopping investments in US stocks. “Only customers who remit money (USD) to buy stocks on US exchanges directly will be unable to do so,” clarified Keshre, assuring that customers investing in any mutual funds or ETFs in INR would continue doing so without any hassles.
He reassured that Groww will continue supporting existing holdings or selling, though new investments in the US dollar will be stopped. “Groww will never leave any customers behind,” Keshre concluded, thanking customers for their trust and patience.
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