The Bengaluru-based stock broking and wealth management platform, Groww, has obtained the green light to carry out its first public offering (IPO) from the Securities and Exchange Board of India (SEBI). This achievement paves the way to the biggest fintech listing ever in the history of India, and the company intends to raise $1 billion through the public issue.

Investors and financial growth

Groww has been able to reach this historic juncture with a robust list of international investors. The major venture capital that the company has received exceeds 390 million, including the Tiger Global, Sequoia Capital, ICONIQ Growth, and Ribbit Capital. Their support over the years indicates that they have confidence in the business model of Groww, its management, and its future. These investors have been instrumental in supporting Groww to grow and become a full-fledged investment platform, as opposed to a mere mutual fund distribution application, and become a fast-growing business in a competitive fintech market.

The parent company of Groww, Billionbrains Garage Ventures Pvt Ltd, had a strong financial growth in FY25. This company registered a triple growth in the net profit of ₹1,819 crore. Another revenue growth was 31% year-on-year, amounting to ₹4,056 crore. These numbers highlight the effectiveness of the operations of the company and its willingness to be subject to scrutiny in the public markets. Such financial growth will boost investor confidence as Groww gets ready to access capital markets. The IPO money will likely trigger further growth and innovation in its product range.

The valuation of Groww in the IPO might likely range between $7-8 billion, a big jump in comparison to its previously known valuation of $3 billion in its Series E round in 2021. In the next few weeks, the company will submit a revised draft red herring prospectus (DRHP), after it was privately submitted in the pre-filing mechanism of SEBI on May 26.

Groww’s upcoming IPO and strategic expansion

Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, former executives of Flipkart, founded Groww in 2016. Groww is one of the investment platforms that has grown rapidly in India. The company started as a mutual fund investment company but has since ventured into stock broking, exchange-traded funds (ETFs), futures, options, US equities, and fixed income.

This strategic growth has made Groww a one-stop shop for retail investors, where it serves the entire financial requirements. Its digital-first and easy-to-use platform has appealed greatly to the technologically minded millennial and Gen Z investors in India.

Groww is the second large startup to IPO after Ather, an electric vehicle maker, successfully listed in the public market earlier this year. The ₹2,626 crore IPO raised by Ather indicated an increase in investor interest in high-growth technology startups in India.

The listing of Groww will only serve as an additional catalyst to the startup ecosystem by providing an example to other fintech firms looking to head to the public markets. It is also indicative of the coming of age of Indian startups, many of which are at this point moving out of the private capital phase.

Conclusion

Groww has received the approval of SEBI and is currently working on submitting its revised DRHP and planning the IPO road show. The company has good financials, diversified products, and an experienced management team that is about to give it a successful listing. Groww is one of the most anticipated Indian Fintech IPOs, which will be followed by investors, analysts, and competitors when it goes public. It is not only a financial milestone, but an affirmation of the vision of the company to democratize investment among millions of Indians.