Growth- competitor Zerodha is to submit an altered DRHP to the Securities and Exchange Board of India for an IPO, aiming for a November listing, as per reports.
Groww, an online investment platform based in India, is preparing for a significant milestone as it plans to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) next week. The company is targeting a public listing by November with an initial public offering (IPO) size of $700 million to $1 billion.
Founded in 2016, Groww started as a mutual fund investment app but has since expanded its services to include stockbroking, digital lending, payments, and wealth management. This diversification has attracted a number of high-profile investors, including Y Combinator, Peak XV Partners, Tiger Global, Ribbit Capital, and Singapore's sovereign wealth fund GIC.
Y Combinator invested at the seed stage in 2018, while Peak XV and Ribbit Capital participated in Series A and B rounds. Tiger Global led an $83 million round in 2021, propelling Groww into the ranks of unicorns. To date, Groww has raised a total of $596 million in equity funding.
The offering will consist of a mix of fresh issue and an offer for sale, providing early investors with the opportunity to partially exit. Notably, this offering will be the first by an Indian startup to follow a "reverse flip" of its domicile back from the United States to India. Groww underwent this process incurring Rs 1,340 crore ($160 million) in taxes to the US government.
Groww's financial performance has been impressive. In FY25, the company reported a threefold increase in net profit to Rs 1,819 crore, and a 31% rise in revenue to Rs 4,056 crore. These strong results contribute to the company's ambitious valuation target of $7 billion to $9 billion at this IPO.
In late August, SEBI approved Groww to proceed with the IPO, marking another significant step towards its public listing. As Groww prepares for this next phase, it continues to forge a path as a leading online investment platform in India.
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