ETtechOnline investment platform Groww has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO), as per a public notice on May 26, 2025.
The IPO size is estimated to be in the range of $700 million to $1 billion, according to people briefed on the matter.
This will make Groww’s public issue among the largest in terms of size, joining the likes of other new-age IPOs including Swiggy, Paytm, and Zomato.
The IPO papers, which have been filed confidentially, will comprise equity shares with a face value of Rs 2 each, to be listed on both the NSE and BSE.The company’s public filing was made under Billionbrains Garage Ventures Ltd, Groww’s registered corporate entity.
“The filing of the pre-filed DRHP shall not necessarily mean that the company will undertake the initial public offering,” the notice said.
The company’s IPO is being filed under Regulation 59C(5) of the Sebi ICDR Regulations, which permits confidential filing ahead of the formal DRHP. This route is increasingly being adopted by tech firms seeking regulatory feedback before making a public submission.
If the IPO goes through, Groww would be one of the first fintech firms to go through a public listing process after undertaking a reverse flip of its parent entity from the US to India. The startup had to pay $160 million in taxes to the US authorities for the flip back.
Pre-IPO funding
Groww, which had raised around $393 million in funding since inception, has closed a pre-IPO round.
ET reported on March 26, 2025, that Groww was in talks with Singapore’s sovereign wealth fund GIC for a $250 million to $300 million funding round at a valuation of around $6.5 billion.
Subsequently, on May 15, 2025, Singapore’s sovereign fund GIC sought approval from the Competition Commission of India for an investment in Groww.
GIC is expected to invest around $150 million to acquire a 2.14% stake in the fintech major.
This round is likely to double the valuation of the Bengaluru-based firm, which had attained a post-money valuation of $3 billion in 2021. Microsoft CEO Satya Nadella had invested in the company as part of that round.
Financial performance
Groww reported an operating revenue of Rs 3,145 crore for FY24 but also incurred a net loss of Rs 805 crore, primarily due to a one-time tax payout stemming from its reverse flipping from the United States to India. At an operational level, the Peak XV Partners-backed startup reported a profit of Rs 535 crore in FY24.
While the core stock broking business is the main revenue generator for the firm, Groww has diversified into digital lending, payments, and wealth management.
Founded in 2016, Groww is backed by investors including Tiger Global, Peak XV (formerly Sequoia Capital India), Ribbit Capital, and Y Combinator.
Recently, Groww closed the acquisition of Fisdom for $150 million, a wealth management firm backed by PayU. Groww also has plans to launch its own wealth management platform ‘W’. Through the deal, Groww intends to build customised wealth management offerings for long-term investors and compete with the likes of Dezerv and Angel One-backed Ionic Wealth.
Competitive landscape
Groww’s public listing, when it happens, will be the first for an Indian pure-play wealth-focused fintech. The company will be competing with Angel One, a listed fintech company which is the third-largest stock broker in terms of active clients on the NSE.
According to data from March, Angel One had more than 7 million active clients, against almost 13 million active clients for Groww. Angel One closed FY25 with an operating income of Rs 5,238 crore. Groww’s FY25 numbers are yet to be filed with the corporate affairs ministry.
Currently, Angel One is trading at a valuation north of $3 billion. Groww will have to leverage its technology play and its diversified financial services game plan to justify the $7 billion valuation it has achieved just before the IPO process in the private market.
Bootstrapped Zerodha, which does not have any immediate plans to go public or raise external funding, closed FY24 with overall revenue of Rs 9,372 crore and a net profit of Rs 5,496 crore.
The IPO size is estimated to be in the range of $700 million to $1 billion, according to people briefed on the matter.
This will make Groww’s public issue among the largest in terms of size, joining the likes of other new-age IPOs including Swiggy, Paytm, and Zomato.
The IPO papers, which have been filed confidentially, will comprise equity shares with a face value of Rs 2 each, to be listed on both the NSE and BSE.The company’s public filing was made under Billionbrains Garage Ventures Ltd, Groww’s registered corporate entity.
“The filing of the pre-filed DRHP shall not necessarily mean that the company will undertake the initial public offering,” the notice said.
The company’s IPO is being filed under Regulation 59C(5) of the Sebi ICDR Regulations, which permits confidential filing ahead of the formal DRHP. This route is increasingly being adopted by tech firms seeking regulatory feedback before making a public submission.
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If the IPO goes through, Groww would be one of the first fintech firms to go through a public listing process after undertaking a reverse flip of its parent entity from the US to India. The startup had to pay $160 million in taxes to the US authorities for the flip back.
Pre-IPO funding
Groww, which had raised around $393 million in funding since inception, has closed a pre-IPO round.
ET reported on March 26, 2025, that Groww was in talks with Singapore’s sovereign wealth fund GIC for a $250 million to $300 million funding round at a valuation of around $6.5 billion.
Subsequently, on May 15, 2025, Singapore’s sovereign fund GIC sought approval from the Competition Commission of India for an investment in Groww.
GIC is expected to invest around $150 million to acquire a 2.14% stake in the fintech major.
This round is likely to double the valuation of the Bengaluru-based firm, which had attained a post-money valuation of $3 billion in 2021. Microsoft CEO Satya Nadella had invested in the company as part of that round.
Financial performance
Groww reported an operating revenue of Rs 3,145 crore for FY24 but also incurred a net loss of Rs 805 crore, primarily due to a one-time tax payout stemming from its reverse flipping from the United States to India. At an operational level, the Peak XV Partners-backed startup reported a profit of Rs 535 crore in FY24.
While the core stock broking business is the main revenue generator for the firm, Groww has diversified into digital lending, payments, and wealth management.
Founded in 2016, Groww is backed by investors including Tiger Global, Peak XV (formerly Sequoia Capital India), Ribbit Capital, and Y Combinator.
Recently, Groww closed the acquisition of Fisdom for $150 million, a wealth management firm backed by PayU. Groww also has plans to launch its own wealth management platform ‘W’. Through the deal, Groww intends to build customised wealth management offerings for long-term investors and compete with the likes of Dezerv and Angel One-backed Ionic Wealth.
Competitive landscape
Groww’s public listing, when it happens, will be the first for an Indian pure-play wealth-focused fintech. The company will be competing with Angel One, a listed fintech company which is the third-largest stock broker in terms of active clients on the NSE.
According to data from March, Angel One had more than 7 million active clients, against almost 13 million active clients for Groww. Angel One closed FY25 with an operating income of Rs 5,238 crore. Groww’s FY25 numbers are yet to be filed with the corporate affairs ministry.
Currently, Angel One is trading at a valuation north of $3 billion. Groww will have to leverage its technology play and its diversified financial services game plan to justify the $7 billion valuation it has achieved just before the IPO process in the private market.
Bootstrapped Zerodha, which does not have any immediate plans to go public or raise external funding, closed FY24 with overall revenue of Rs 9,372 crore and a net profit of Rs 5,496 crore.
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