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Tag: Groww IPO

  • Groww Seeks to Raise INR 6,000–7,000 Crore Through Revised IPO Filing

    Groww, an online investing platform, has submitted a revised draft prospectus for an IPO of INR 6,000–7,000 crore to the Securities and Exchange Board of India (SEBI). The transaction would consist of an offer for sale (OFS) of 574 million shares valued at about INR 5,000–6,000 crore and a new issuance of INR 1,060 crore.

    As previously reported by ET, the Bengaluru-based company plans to IPO in November at a valuation of $7-9 billion. Peak XV Partners, Y Combinator, Ribbit Capital, Tiger Global, and Kauffman Fellows Fund are among the investors taking part in the OFS. One million shares will also be sold by the company’s founders, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, who together own 27.96% of the business.

    After submitting confidential draft documents to the market regulator in May, Groww was granted permission by SEBI to proceed with its initial public offering (IPO) last month.

    Groww’s Financial Performance in FY25–FY26

    Kotak Mahindra Capital Company, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors are among the issue’s book running lead managers. The company’s net profit increased 11% from the previous year to INR 1,824 crore in FY25 and INR 378 crore in the June quarter of FY26. FY25 revenue was INR 4,056 crore, a 31% increase from the previous year. Groww intends its recent expansion into commodities, wealth management, margin trading facilities (MTF), and loans secured by shares to fuel its future growth.

    The company’s NSE active clientele increased from 10.92 million to 12.58 million as of June 30. Derivative active users decreased 28% year over year in Q1 FY26 as a result of the regulator’s increased scrutiny of futures and options (F&O) trading, while fees and commission income decreased 17.5%.

    Nonetheless, Groww’s average daily turnover increased 18.2% to INR 9,276 crore during that time, and its retail F&O market share increased from 9.69% to 14.43%. After executing a reverse flip of its parent company from the US to India, Groww is one of the first firms to pursue an initial public offering (IPO). Based on a recently determined fair market value, the company paid US taxes of INR 1,340 crore ($160 million), which is 30% less than the $3 billion valuation at which it last raised capital in 2021.

    Future Plans of Groww

    Groww has so far raised roughly $596 million in equity capital, according to Tracxn. As per media reports of March 26, it just secured a $200 million round backed by GIC and Iconiq Capital at a valuation of $7 billion. Subject to SEBI’s clearance, the company has also finalised a deal to pay $150 million in cash to acquire the wealthtech platform Fisdom, which is funded by PayU.

    In addition, it is getting ready to launch W, a new wealth management platform aimed at long-term investors, to compete with rivals like Dezerv and Ionic Wealth, which is financed by Angel One. Groww, which began as a mutual fund investment platform when it was founded in 2016 by former Flipkart executives Keshre, Jain, Singh, and Bansal, is currently the largest stockbroker in India by active clients, according to NSE data.

    The platform added 9.45 million new demat accounts between June 2024 and June 2025, whereas the industry added 36.66 million during the same time frame.

    Quick
    Shots

    •Issue structure: OFS of around INR
    5,000–6,000 crore + fresh issue of INR 1,060 crore.

    •Planned IPO in November at $7–9
    billion valuation.

    •Founders to sell 1M shares; currently
    hold 27.96% stake.

    •Reverse flip from US to India led to
    INR 1,340 crore ($160M) US tax payout.

  • Groww Secretly Files for IPO with SEBI, Eyes Market Debut

    The first official step towards a stock market debut has been taken by wealthtech unicorn Groww, which has confidentially registered for an IPO through the Securities and Exchange Board of India’s pre-filing method.

     Groww’s parent company, Billionbrains Garage Ventures Limited, stated in a public notice issued on May 26 that the DRHP was filed in accordance with Chapter IA of the SEBI ICDR Regulations, which permits the business to request SEBI’s feedback without immediately making its IPO materials available to the public.

    On May 15, a media outlet exclusively revealed that Groww was raising $150 million from Singapore-based GIC as part of a $250–300 million pre-IPO round and was scheduled to submit a confidential application for an IPO with SEBI in two weeks. Groww’s post-money valuation in the round was $7 billion, according to the report.

    Groww will submit an updated DRHP, which will be publicly available and contain information on the company’s financial performance up to the most recent quarter, after Sebi approves the IPO, which could take up to two months.

    Details of the IPO

    According to reports, Groww is anticipated to adopt a cautious IPO valuation of $7-8 billion, taking into account the volatility and emotion of the market.

    One of the most widely watched public offerings in India’s fintech sector this year, the valuation suggests that an IPO size of between $700–920 million might be implied by a standard 10-15% share dilution. Groww intends to list its equity shares on the mainboards of the NSE and BSE, with a face value of INR 2 apiece.

    Information has not yet been made public, including the offer-for-sale breakdown, fresh issue component, and overall issue size.

    Financial Outlook and Operations of Groww

    The fintech company provides mutual funds and other financial products and competes with Upstox and Zerodha in online discount broking. When it went through its Series E round in 2021, its last valuation was $3 billion.

     Ribbit Capital, Tiger Global, and Peak XV Partners are among its main sponsors. On a consolidated basis, the stockbroking company with the biggest active investor base has more than doubled its FY24 revenue to INR 3,145 crore.

     Although the company’s FY25 financials are not yet available to the public, they will probably be included in the revised DRHP. In the year that ended in March 2024, its consolidated operational profit increased by 17% to INR 535 crore, up from INR 458 crore the previous year.

    For FY23, its total revenue was INR 1,435 crore. Groww reported a combined net loss of INR 805 crore as a result of the Rs 1,340 crore one-time domicile tax. During the most recent fiscal year, Groww relocated its registered office from Delaware, USA, to Bengaluru.

  • With a Valuation of $7-8 Billion, Groww is in Negotiations to Apply for an IPO

    According to a media report, stockbroking company Groww has been in talks with several investment bankers about its initial public offering (IPO), hoping to earn about $700 million at a valuation of $7-8 billion. Groww has begun the IPO process by working with investment bankers. The timing hasn’t been determined yet, though. The report went on to say that it would depend on the situation of the market.

    Less than a year has passed since the company finished relocating its holding company’s headquarters from the US to India, becoming one of the leading fintech companies to return to their home countries in the face of advantageous economic policies and a growing domestic market. The Bengaluru-based business intends to list at a time when the nation’s stock brokers are struggling with a recent decision by market regulator Sebi to restrict trading in futures and options, citing speculation by small retail traders.

    Groww Showing Strong Performance in the Market

    Groww‘s valuation is contextualised by the fact that Angel One, a Mumbai-based and publicly traded stockbroking firm, is valued at less than $3 billion. In terms of active investors, Groww, one of India’s top full-stack financial services companies, outperformed rival Zerodha last year.Groww more than doubled its user base from the previous year, adding over 50 lakh users by November 2024. Over the past year, it has increased its advantage over Angel One and Zerodha, its nearest competitors.

    Groww presently leads Zerodha by over 50 lakhs. According to data from market exchanges as of December 2024, Groww has over 1.3 crore active investors on the site, whilst Zerodha has approximately 81 lakh active investors.There are over 78 lakh active investors in Angel One.

    Shifting from Mutual Funds to Stock Trading

    Groww began as a direct mutual fund platform before concentrating on stock trading and swiftly becoming the biggest broking app in the nation. Over 12 million traders are currently using Groww’s application. The business ended the previous fiscal year with INR 3,145 crore in total revenue and INR 805 crore in net losses.

    The firm sponsored by Peak-XV Partners claimed an operating profit of INR 535 crore, but the one-time tax payment from the flip back to India was the reason for its net loss. In addition to trading stocks, Groww manages assets and extends credit through a non-banking financing company. The company provides consumer credit and check-out finance services via Groww Creditserv Technology. The lender had INR 731 crore in assets under control by March 2024.

    This year, Groww is one of several Indian businesses aiming to go public. Various media outlets reported on January 13 that Ather Energy is seeking a public offering of $2.4 billion. The fintech company MobiKwik went public in December and is now valued at over INR 4,000 crore.

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