Online investment platform Groww has filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its highly anticipated ₹7,000 crore initial public offering (IPO). The Bengaluru-based company, backed by marquee investors including Peak XV Partners, Ribbit Capital, and Microsoft CEO Satya Nadella, is aiming for a market valuation of approximately $9 billion through this public issue.
The IPO marks a significant milestone for Groww, which began as a direct mutual fund distribution platform in 2017 and has since evolved into one of India’s largest stockbroking firms by active clients. The updated DRHP reflects a strategic recalibration from its earlier ₹8,300 crore IPO plan, with a fresh issue of ₹1,060 crore and an offer for sale (OFS) component estimated between ₹5,000–₹6,000 crore.
IPO Structure and Key Components
| Component | Details |
|---|---|
| Total Issue Size | ₹7,000 crore |
| Fresh Issue | ₹1,060 crore |
| Offer for Sale (OFS) | ₹5,000–₹6,000 crore |
| Promoter Stake Sale | Minimal (0.07%) |
| Valuation Target | $9 billion |
| DRHP Filed By | Billionbrains Garage Ventures Ltd (Groww’s parent company) |
The OFS will include equity shares offloaded by existing investors and promoters. Founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal—who collectively hold around 28% stake—will sell only a small portion of their holdings, signaling long-term commitment.
Use of Proceeds: Strategic Allocation
Groww plans to deploy the IPO proceeds across multiple growth and infrastructure verticals. The fresh capital will be used to strengthen its technology backbone, expand its NBFC operations, and enhance brand visibility.
| Allocation Area | Amount (₹ crore) |
|---|---|
| Brand Building & Marketing | ₹225 |
| Capital Infusion into Groww Creditserv (NBFC) | ₹205 |
| Margin Trading Facility via Groww Invest Tech | ₹167.5 |
| Cloud Infrastructure Enhancement | ₹152.5 |
| Inorganic Growth & Acquisitions | Remaining balance |
This diversified allocation reflects Groww’s ambition to scale its product offerings and deepen its footprint in India’s fast-evolving fintech landscape.
Investor Profile and Shareholding Dynamics
Groww’s investor roster includes some of the most influential names in global venture capital. The updated DRHP lists Peak XV Partners, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund among the key stakeholders participating in the OFS.
| Investor Name | Role in IPO |
|---|---|
| Peak XV Partners | Selling shareholder |
| YC Holdings II | Selling shareholder |
| Ribbit Capital V | Selling shareholder |
| Satya Nadella | Strategic investor |
| Founders (Keshre, Jain, Singh, Bansal) | Promoters, minimal stake sale |
The promoters have committed to a 20% lock-in for 1.5 years post-listing, reinforcing their long-term vision for the company.
Financial Performance Snapshot
Groww has demonstrated robust financial growth over the past two fiscal years, with rising profitability and expanding user base.
| Financial Metric | FY23 | FY24 |
|---|---|---|
| Consolidated Revenue | ₹1,435 crore | ₹1,680 crore (est.) |
| Operational Profit | ₹458 crore | ₹535 crore |
| Subscriber Base (March 2025) | 13.03 million | — |
The company’s consistent profitability and expanding client base position it favorably among India’s new-age fintech players.
Evolution of Groww: From Mutual Funds to Full-Stack Brokerage
Founded by four ex-Flipkart employees, Groww started as a mutual fund distribution platform before rapidly diversifying into stocks, ETFs, digital gold, intraday trading, and IPO investments.
| Year | Milestone |
|---|---|
| 2017 | Founded as mutual fund platform |
| 2020 | Added stock trading, ETFs, digital gold |
| 2021 | Launched intraday and IPO services |
| 2023 | Introduced NBFC arm Groww Creditserv |
| 2025 | Filed updated DRHP for ₹7,000 crore IPO |
Today, Groww is the largest stockbroker in India by active clients, surpassing competitors like Angel One and Upstox.
Competitive Landscape and Market Position
| Broker Name | Active Clients (2025) | IPO Status |
|---|---|---|
| Groww | 13.03 million | Filing stage |
| Angel One | 12.5 million | Listed (2020) |
| Upstox | 9.8 million | Unlisted |
| Zerodha | 10.2 million | Unlisted |
Groww’s IPO will make it the second major online brokerage firm to go public after Angel One, which raised ₹600 crore in 2020.
Strategic Outlook and Future Plans
Groww’s IPO is not just a liquidity event—it’s a strategic inflection point. The company aims to:
- Expand its NBFC operations to offer margin trading and personal loans
- Invest in AI-driven advisory tools and robo-advisory platforms
- Explore international expansion in Southeast Asia
- Strengthen compliance and cybersecurity infrastructure
These initiatives are expected to position Groww as a full-stack financial services provider catering to India’s growing investor class.
Conclusion: Groww’s IPO Signals Maturity of India’s Fintech Ecosystem
Groww’s ₹7,000 crore IPO filing with SEBI marks a defining moment in India’s fintech evolution. With a strong financial track record, diversified product suite, and visionary leadership, the company is poised to attract significant investor interest. As it transitions from a startup to a publicly listed entity, Groww’s journey reflects the aspirations of India’s digital-first economy and the growing democratization of financial services.
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Disclaimer: This article is based on publicly available financial filings, verified news reports, and investor disclosures. It is intended for informational purposes only and does not constitute investment advice. All figures and plans are subject to change based on regulatory approvals and market conditions.
