Tea Post Files Draft Papers for IPO...
14 Jun, 2025
Groww, an online investment platform, has filed draft files in a confidential manner to the Securities and Exchange Board of India (SEBI) for a $700 million to $1 billion initial public offering (IPO) as a milestone for the Bengaluru-headquartered fintech, which has emerged as one of India’s leading retail broking platforms since it was founded in 2016.
Groww's IPO filing has been submitted under SEBI's ICDR Regulations 59C(5), allowing for pre-filing the draft red herring prospectus (DRHP) confidentially. This route, which has been increasingly popular with Indian technology firms, contemplates giving the company the option of seeking regulatory feedback before making the information public, resulting in greater flexibility along with a longer timeline to finalise IPO plans.
The issue will comprise equity shares of the face value of ₹2 each listed on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE). The issue will comprise a new issue along with an offer for sale made by existing shareholders.
Leading the charge ahead of the IPO, Singapore's sovereign fund GIC has made a filing at the Competition Commission of India to invest in a 2.14% stake in Groww through the investment firm Viggo Investments. This is part of a larger pre-IPO equity funding round of $250–300 million, where GIC would invest around $150 million. The round would put Groww at around $7 billion post-money, higher than twice its previous private market valuation at $3 billion from its 2021 Series E raise. Existing investor Tiger Global would probably participate.
Groww has seen substantial growth, recording operating revenue of ₹3,145 crore in FY24, double last year's figure of ₹1,435 crore. The company has maintained an operating profit of ₹535 crore, an increase from last year's operating profit of ₹458 crore in FY23. A one-time tax outflow of ₹1,340 crore on its US to India reverse flip resulted in it reporting a net loss of ₹805 crore for FY24.
Market share in retail broking rose to over 26% as of March 2025, whereas the active client accounts rose 36% year on year to 1.29 crore. Groww's simplicity and mobile-first approach, along with its investor education initiative, have been credited with its rapid acceptance among retail investors.
Its investors comprise some of the best investors in the world, including Microsoft CEO Satya Nadella, Ribbit Capital, Peak XV (formerly Sequoia Capital India), Y Combinator, and Tiger Global. It has raised a total of $393 million since its founding and has significant investor interest as it prepares to go public.
IPO proceeds will be used to invest in technology development and business growth, further strengthening Groww’s leadership position in the digitization of retail investment in India.
Groww's pre-filing IPO is part of the trend of technology firms in India, including Shiprocket, Swiggy, and Tata Capital, to opt for the pre-filing route. The path provides the company with greater flexibility and spares it the rush to list, providing it with a larger window to list and allowing it to alter the issue size. With its good growth curve, expanding market share, and marquee investor endorsement, Groww's upcoming IPO will be among the most awaited floats of the year in India's fintech industry.
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