Investing in physical assets has long been recognized as a lucrative avenue for wealth creation. In the recent few years, there has been a significant growth of technology-backed investment platforms in India. One such fintech startup is Grip Invest. Within a very short time, this new alternative investing platform has received popularity among small retail investors in the country. In this comprehensive Grip Invest Review, you will find all the details including pros and cons, how it works, competitors, and more.
Grip Invest Review
There are several investment options for retail investors in India at present. Other than traditional fixed deposits and government bonds, investment alternatives like the stock market, mutual funds, and crypto have received huge popularity among Indian investors. However, these alternative investment choices come with varied degrees of advantages and risks. Grip Invest is a new addition to the list of investment platforms for Indian retail investors.
What is Grip Invest?
Grip Invest based in Gurgaon, Haryana is an innovative new-age online crowdfunding platform in India. The company was formed in the year 2020 by Nikhil Aggarwal and Vivek Gulati. It provides retail investors looking for small ticket non-market linked investment options and startups looking for growth capital.
Grip Invest mainly deals with physical assets like vehicles, equipment, and furniture, that earn lease income. Till the time of writing this review, the company has served more than 2.5 lac investors.
Pros of Grip Invest
Grip’s track record has been 10% default-free till now, despite user investments totalling over Rs. 26 crores. The major reason for this achievement is that the company carefully selects companies after a rigorous due diligence procedure to reduce the likelihood of default.
Furthermore, they plan their investments so that a security deposit of 7.5%-15% of the lease is required.
One of the most important reasons for the success of Grip is its ability to uncover non-market connected investment possibilities and provide access to investors of various types.
The following is an overview of the different advantages of investing with Grip Invest:
- Extensive research is done by professional management before listing to receive investment from investors.
- Provide detailed information including risks and rewards to investors for each asset.
- Each investor’s money is treated as a separate entity.
- Offer attractive returns
- Flexible investment size
- User-friendly interface for investors to invest.
- The platform is legit and no complaints received.
- The KYC information is safe and not shared by the company.
Read: How to Invest in Stocks with Zerodha Trading Platform
Cons of Grip Invest
It is needless to say, each platform has its own set of risks. The biggest here is the lack of restrictions and the seeming lack of information about non-market-related investing options may pose the greatest risk.
Other dangers include those associated with certain products. Take, for example, leasing. If you invest in a lease through Grip, your money is combined with those of other investors to purchase an asset such as furniture, trucks, or equipment, which is subsequently leased to businesses.
The risk here is that if the startup fails or does not make the lease payments on time, the asset is difficult to recover and sell to earn residual value.
Startup investment is a high-risk and high-reward option for investors. It depends on the startup’s performance. These types of non-market connected investment options heavily rely on the underlying asset’s performance for returns. Hence the risk is substantial and unregulated.
Furthermore, when you invest in startup equity, you will need to contribute a total of INR 25,00,000 over 5 years commencing with the first investment.
Another drawback is that you can’t claim any tax refunds on your investments in Grip Invest. Also, the platform charges a considerable amount of fees for processing and maintenance.
How to Invest?
Grip Invest streamlines the investment process, making it straightforward and accessible for both experienced and novice investors. Here is a step-by-step breakdown of how it works:
1. Registration
To get started, investors must sign up on the Grip Invest platform. The registration process is quick and hassle-free, requiring basic personal information and compliance with regulatory requirements.
2. Complete your KYC
The next step is to complete your KYC. It is a simple process. Just follow the steps as instructed.
2. Select the Investment Type
After you have successfully registered and completed your KYC with the platform, it is time to decide on the type of investing. There are four ways of investing in Grip Invest. They are the following:
- Corporate Bonds
- LeaseX & InvoiceX
- Startup Equity
- Commercial Property
Browse through the assets category-wise. The platform provides details of each asset. It includes yield of maturity, minimum investment, maturity period, ratings, and minimum investment. For startup equity investment, find details like company details, investment highlights, and industry information. Select the one that suits you best.
3. Select Investment Amount
After selecting the asset, it is time to choose the investment amount. For corporate bonds, the minimum investment needed is Rs. 10,000. For commercial property investment, the minimum investment is Rs. 1 Lac. In other assets, the minimum investment amount varies.
Competitors to Grip Invest
While Grip Invest offers a unique and compelling platform for real estate crowdfunding, it is essential to be aware of other players in the market. Some notable competitors to Grip Invest include:
- Wint Wealth
- KredX
- Club
- LegalPay
These are just a few examples of competitors in the alternative crowdfunding space. Each platform has its unique features, investment opportunities, and target audience. Investors should carefully evaluate their investment goals and preferences before choosing a platform that aligns with their needs.
Conclusion:
We hope this Grip Invest Review will help to make an informed decision to invest or not to invest in this platform. Do remember, there will always be a risk involved in this type of investing. You must read all the information and reviews and then make your own decision.
Frequently Asked Questions (FAQs)
Is Grip Invest Safe?
Grip Invest is an investment platform that allows small retail investors to come together and pool funds for startups. This fund is then used by Grip Invest to buy assets that are leased out to startups looking for funding. These startups then pay fixed monthly returns to the investors. There is always an element of risk in non-market linked investment opportunities as these type of investments is not conclusively monitored by conclusive regulatory authorities. However, the security track record of Grip Invest has been 100% as there has been not a single default yet.
How Does Grip Make Money?
The company gets paid when the startups pay the investors. At present, Grip Invest charges about a 2% commission on the monthly returns disbursed to the investors. in addition, they also charge a 1% processing fee to their leasing partners.
Does the Grip Invest App Available?
No, Grip does not have an official App. However, they have a simple and user-friendly interface to invest from their website only.
Hello, I’m Rupak Chakrabarty, a passionate advocate for small and medium enterprises (SMEs) and the driving force behind MUVSI Consulting, where I serve as a dedicated small business coach. With years of experience in the entrepreneurial world and a deep-rooted commitment to helping SMEs thrive, I bring a wealth of knowledge, expertise, and guidance to aspiring and established business owners alike.