Groww, a competitor of Zerodha, plans to submit a revised Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO), aiming for a November listing, according to a report.
India's online investment platform, Groww, is preparing to take a significant step forward as it gears up for an initial public offering (IPO). The company, founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, has come a long way since its inception as a mutual fund investment app.
Groww has expanded its services to include stockbroking, digital lending, payments, and wealth management. The company's strategic moves have paid off, as evidenced by its impressive financial results for FY25. Groww reported a threefold increase in net profit, reaching Rs 1,819 crore, and a 31% rise in revenue to Rs 4,056 crore.
The company's growth trajectory has not gone unnoticed. Groww has raised a total of $596 million in equity funding, with investors including Y Combinator, Peak XV Partners, Tiger Global, and Ribbit Capital. Y Combinator invested in Groww at the seed stage in 2018, while Tiger Global led an $83 million round in 2021, pushing Groww into the unicorn club. The latest funding round of $200 million was led by Singapore's sovereign wealth fund GIC and Iconiq Capital, valuing Groww at $7 billion.
Groww's IPO offering will consist of a mix of fresh issue and an offer for sale. The initial public offering is estimated to be between $700 million and $1 billion. Groww filed its initial draft papers confidentially in May through Billionbrains Garage Ventures Ltd. The company received SEBI approval to proceed with the IPO in late August.
However, the IPO timeline and size have not been disclosed. What is known is that the offering will be a significant milestone for Groww, as it seeks to solidify its position as a leading player in India's digital investment landscape.
The company's journey has not been without challenges. The reverse flip of Groww's domicile from the United States to India cost the company Rs 1,340 crore ($160 million) in taxes to the US government. Despite this setback, Groww has persevered, demonstrating resilience and a commitment to its mission.
As Groww prepares for its public listing, it stands poised to make a substantial impact on India's financial sector. With a valuation range of $7 billion to $9 billion, Groww is aiming high, reflecting its ambitions and confidence in its future growth. The company's IPO is expected to take place by November, marking an exciting new chapter in Groww's story.
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