Indian investment firm Groww secures $336.7m ahead of IPO
- ByStartupStory | November 4, 2025
Indian Investment Firm Groww Secures $336.7 Million Ahead of IPO Launch
Bengaluru-based fintech giant Groww has raised approximately $336.7 million (around ₹2,800 crore) in pre-IPO funding, bolstering its position as one of India’s largest retail investing platforms. The fresh capital comes as the company prepares to launch its initial public offering (IPO), seeking to raise about ₹6,632 crore in a combined fresh issue and offer for sale.
Groww’s growth story is marked by rapid user adoption and strong financial performance. The company’s active user base has jumped from 5 million in FY23 to nearly 14 million by FY25, while net profits soared from ₹457 crore to ₹1,824 crore over the same period. Despite a one-time tax-related loss in FY24 due to re-domiciling from the US to India, Groww has maintained solid operating profit margins, expanding from 36% to nearly 59%.
The company’s tech-first approach has been a key differentiator, with most software development done in-house to ensure agility and scalability. This has allowed Groww to seamlessly handle surges in trading volumes and quickly implement regulatory changes without disruption. In FY25 alone, Groww increased technology spend by 67% to ₹440 crore to support this growth.
Groww’s IPO includes a fresh issue portion of ₹1,060 crore intended for investments in cloud infrastructure, expansion of lending products, including margin trading facilities and loans, as well as marketing and acquisitions. The majority of the IPO proceeds will come from an offer for sale, providing liquidity to early investors.
Anchor investors have shown strong confidence, with bids oversubscribed by over 15 times, including commitments from marquee names such as SBI Mutual Fund, Sequoia Capital, Abu Dhabi Investment Authority, Dragoneer Investment Group, and Coatue Management.
The Bengaluru-based startup faces future challenges including regulatory changes. The Securities and Exchange Board of India (SEBI) tightened derivative trading rules in October 2024, impacting Groww’s broking business, which historically contributed the lion’s share of revenue. However, the company is diversifying its products, adding wealth management services and commodity derivatives to expand revenues beyond core brokerage.
Analysts suggest Groww’s IPO is fairly valued, with a price-to-earnings ratio higher than some peers but justified by its growth trajectory and market leadership. The company aims to leverage ongoing digital adoption trends and deepen customer engagement by expanding product offerings while maintaining its direct-to-consumer ethos.
In summary, Groww’s substantial pre-IPO funding round exemplifies investor confidence in India’s digital wealth management sector and positions the company for a strong public market debut, backed by robust financials, a growing user base, and strategic product diversification.
Follow Startup Story
Related Posts
