Groww, India’s leading stockbroking platform, is preparing to file a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) within the next two weeks. This move is part of its strategy to go public, aiming to raise approximately $700 million through the initial public offering (IPO) .
In a significant development, Singapore’s sovereign wealth fund GIC has committed to investing $150 million in Groww, leading a pre-IPO funding round estimated between $250 million and $300 million. This investment is expected to value Groww at around $7 billion, more than doubling its previous valuation of $3 billion in 2021
GIC has sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Groww through its affiliate, Viggo Investment Pte. Ltd. The company stated that this transaction would not alter the competitive landscape in any relevant market
Founded in 2016 by former Flipkart employees, Groww has rapidly expanded its services to include equity trading, mutual funds, fixed deposits, and US stocks. As of 2024, it boasts over 15 million registered users and has become India’s largest retail stockbroker by active NSE clients, holding a 23% market share
Financially, Groww has shown impressive growth. In the fiscal year ending March 2024, the company reported a consolidated revenue of ₹3,145 crore, more than doubling from the previous year. Its operational profit rose by 17% to ₹535 crore during the same period
The upcoming IPO and substantial investment from GIC underscore the confidence investors have in India’s fintech sector and Groww’s position within it. The company’s move to file a confidential DRHP indicates a strategic approach to its public listing, allowing it to explore market conditions and investor interest discreetly before making detailed financials public.mint
