Bengaluru-based investment platform Groww is gearing up to hit the public markets, becoming one of India’s most prominent new-age fintech firms to do so. As it lines up a confidential IPO filing, Groww is also sealing a large pre-IPO funding round backed by GIC, even as the broking industry faces its most turbulent phase in years.
Credits: Outlook Business
IPO Filing on the Horizon
Groww is set to file confidentially for its IPO with SEBI within the next two weeks, according to sources familiar with the matter. The company is expected to go public at a conservative valuation of $7–8 billion, factoring in current market volatility and tepid investor sentiment towards high-growth tech stocks.
This confidential filing allows Groww to work closely with regulators and revise its documents before they’re made public. Once SEBI gives its green light — a process likely to take two to three months — the company will file a public Draft Red Herring Prospectus (DRHP) with updated financials, including its FY25 numbers.
$150 Million Pre-IPO Boost from GIC
To bolster its balance sheet ahead of the IPO, Groww is in the final stages of closing a $150 million investment from Singapore’s sovereign wealth fund GIC. This is part of a larger $250–300 million pre-IPO round, which is expected to conclude within the next fortnight.
The funding will value Groww at $7 billion post-money, aligning with the IPO pricing range. This vote of confidence from a global institutional investor like GIC provides Groww with not just capital, but significant credibility as it prepares for life as a public company.
Explosive Growth in FY24, But One-Time Hit Turns Bottom Line Red
Financially, Groww has shown impressive performance over the past year. Its consolidated revenue more than doubled to ₹3,145 crore in FY24, up from ₹1,435 crore in FY23. Operational profit also climbed by 17% YoY to ₹535 crore, underscoring the platform’s ability to scale while maintaining profitability.
However, the company reported a net loss of ₹805 crore for the year due to a one-time domicile tax charge of ₹1,340 crore. This tax hit came as a result of Groww shifting its registered office from Delaware (US) to Bengaluru, aligning itself more closely with Indian regulatory frameworks ahead of its public listing.
Industry-Wide Storm Clouds: Regulatory Pressure and User Drop-off
Groww’s IPO journey comes at a challenging time for the stockbroking industry. Over the past few months, all major players — including Zerodha, Angel One, and Groww itself — have seen a steady decline in active users. In April alone, Groww lost around 75,000 active investors, while Zerodha shed over 55,000, marking its fifth straight month of decline.
The sector is grappling with tighter regulations on retail futures and options (F&O) trading, reduced exchange rebates, and the looming threat of higher transaction taxes. Analysts estimate that these changes could lead to a 30–50% hit in topline revenues for broking firms in the second half of FY25.
Angel One, a publicly listed broker, has already felt the impact. It reported a 49% drop in net profit for Q4 FY25 (₹175 crore) and a 22% decline in revenue compared to the same quarter the previous year.
Credits: Money Control
Groww’s IPO: High Stakes and High Hopes
Despite macro headwinds, Groww’s long-term story remains compelling. As the largest stock broker in India by active investors, the company has built a powerful brand among young, digital-first investors. Its steady operational growth and strong backing from investors like GIC position it as a standout player in India’s fintech landscape.
The coming months will be crucial. With SEBI’s nod and fresh financials expected in the public DRHP, all eyes will be on whether Groww can navigate this tricky market phase and still deliver a successful IPO — one that could potentially redefine the outlook for Indian tech listings in 2025.
