Groww, the stock broking platform, has opted to discontinue its offering of US stocks starting next month due to ‘certain complications’ that the startup believes impede the customer experience it strives to provide.
In a recent update addressed to its clientele, Groww announced the suspension of new investments in US stocks effective from February 27, 2024. Furthermore, it informed customers that they would no longer be able to deposit funds into their US dollar wallets after this date.
As the leading stock broker in India by trading volume presently, Groww informed its clients that all withdrawal activities would cease after March 31, 2024. Investors are advised to either withdraw their funds before the specified deadline or transfer their holdings to another US-based broker. However, according to a report by Livemint on Tuesday, Groww has since extended this deadline to June 30, 2024.
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.