Groww Set to File Confidential IPO, Raises $150 Million from GIC at $7 Billion Valuation...
16 May, 2025
Bengaluru-based stock broking and investment platform Groww is getting ready for its much-awaited initial public offering (IPO) and is prepared to submit a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) within the next two weeks. The action follows the company valuing Groww at $7 billion post-money as it lands a $150 million investment from Singapore's sovereign wealth fund GIC.
Groww is supposed to send SEBI its confidential IPO file in the next weeks. After two to three months of regulatory approval, the company will submit an updated DRHP including the most recent financial data for public viewing.
The $150 million acquired from GIC is a component of a bigger, expected to close soon $250–300 million pre-IPO round. GIC has asked the Competition Commission of India (CCI) for permission to own a 2.14% share in Groww's parent company, Billionbrains Garage Ventures.
Targeting a modest IPO valuation between $7–8 billion, the company reflects its high growth potential and current market conditions using this valuation.
Now the biggest stock broking company in India based on active investor base, Groww more than doubled its consolidated revenue to ₹3,145 crore in FY24. For the year ending March 2024, its operational profit increased 17% to ₹535 crore. But a one-time tax cost of ₹1,340 crore incurred from Groww's move of its registered office from Delaware, US, to Bengaluru resulted in a net loss of ₹805 crore for the year.
Strategic moves and regulatory compliance: Groww changed its domicile from the US to India in November 2024 in order to support its domestic listing plans.
Groww has been aggressively clearing outstanding cases with SEBI ahead of its IPO, paying fines for claimed violations of stockbroker rules and technical disclosures.
Groww's IPO plans coincide with a difficult period for the broking sector since recent rules and negative investor attitude have reduced active investors on mthe ain platforms. Notwithstanding this, Groww keeps leading the market with about 13 million active users and operational profitability.
To handle its public issue, which is expected to have a sizable offer-for-sale component and a smaller fresh issue, the company has engaged top investment banks including Kotak Mahindra Bank and JPMorgan Chase & Co. By the end of FY26 Groww might be listed on Indian exchanges if market conditions remain favourable.
With Groww's forthcoming IPO among the most closely watched listings in India's fintech industry, it indicates great investor demand for new-economy businesses with clear growth paths.
