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Groww Confidentially Files for IPO with SEBI, Eyes $7-8 Billion Valuation

• ByStartupStory     |    May 26, 2025

Wealthtech unicorn Groww has taken its first formal step toward a public listing by confidentially filing for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI), under the regulator’s pre-filing mechanism.

In a public notice released on Monday, Groww’s parent company, Billionbrains Garage Ventures Limited, confirmed the submission of the Draft Red Herring Prospectus (DRHP) under Chapter IA of the SEBI ICDR Regulations. This route enables companies to obtain SEBI’s feedback on IPO documents without making them publicly accessible immediately.

This development comes weeks after a Moneycontrol report on May 15 revealed that Groww was preparing to file confidentially for an IPO within two weeks. The same report also stated that the company was raising $150 million from Singapore’s sovereign wealth fund GIC, as part of a $250–300 million pre-IPO round, with a post-money valuation pegged at $7 billion.

IPO Valuation and Listing Plan

According to sources, Groww is likely to adopt a conservative IPO valuation of $7-8 billion, factoring in current market sentiment and volatility. Based on this valuation and a typical 10-15 percent equity dilution, the IPO size is expected to range between $700-920 million.

Groww plans to list its equity shares (face value Rs 2 each) on the mainboards of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). However, finer details such as the total issue size, fresh issue component, and offer-for-sale breakdown have not yet been disclosed.

The IPO is expected to be closely watched in India’s fintech space, where Groww competes with players like Zerodha and Upstox in online discount broking and distribution of mutual funds and financial products.

Financial Performance and Operational Metrics

Groww, which last raised funds in 2021 at a $3 billion valuation during its Series E round, has demonstrated significant growth in recent years. Backed by marquee investors like Tiger Global, Peak XV Partners, and Ribbit Capital, the company has the largest active investor base among brokers in India.

For FY24, Groww more than doubled its consolidated revenue to Rs 3,145 crore, up from Rs 1,435 crore in FY23. The consolidated operational profit rose 17 percent to Rs 535 crore in FY24, compared to Rs 458 crore in the previous fiscal.

Despite strong operational performance, Groww posted a net loss of Rs 805 crore at the consolidated level in FY24, largely due to a one-time domicile tax of Rs 1,340 crore. The fintech major had relocated its registered office from Delaware, US, to Bengaluru during the last fiscal.

Challenging Time for Broking Industry

Groww’s IPO filing comes amid a challenging period for the broking sector. New regulations, falling investor sentiment, and increased restrictions on retail futures and options trading have led to a steady decline in the active user base across top brokerages.

Groww saw a drop of 75,000 active investors in April 2025, while its rival Zerodha saw a reduction of over 55,000 users. Notably, this marked the fifth consecutive month of declining active investors for Zerodha.

The broader industry is also grappling with the impact of higher trading taxes, lower exchange rebates, and SEBI-imposed restrictions on retail trading. Analysts project a 30-50 percent hit to toplines of broking firms in the second half of FY25.

For reference, listed broking firm Angel One reported a 49 percent fall in net profit to Rs 175 crore in Q4FY25, down from Rs 340 crore in the same period last year. Its consolidated revenue also declined 22 percent to Rs 1,056 crore, compared to Rs 1,357 crore in Q4FY24.

What’s Next?

SEBI is expected to take up to two months to review Groww’s confidential DRHP. Upon approval, the company will file an updated DRHP that will be publicly available and include detailed financial disclosures up to the latest quarter.

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