Groww, a competitor of Zerodha, prepares to submit an updated DRHP to SEBI for an Initial Public Offering, aiming for a November stock market debut, according to a report.
Indian online investment platform Groww is preparing to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) next week, setting the stage for a potential public listing in November. The initial public offering (IPO) is expected to be between $700 million and $1 billion, seeking a valuation of $7 billion to $9 billion.
Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, all former Flipkart executives, Groww initially started as a mutual fund investment app. Over the years, it has expanded its services to include stockbroking, digital lending, payments, and wealth management.
Groww has attracted high-profile investors, including Y Combinator, Peak XV Partners, Tiger Global, Ribbit Capital, GIC, and Iconiq Capital. Y Combinator invested in Groww at the seed stage in 2018, while Peak XV and Ribbit Capital participated in its Series A and B rounds. Tiger Global led an $83 million round in 2021, pushing Groww into the unicorn club. The latest funding round, led by Singapore's sovereign wealth fund GIC and Iconiq Capital, closed at a $7 billion valuation.
The offering will consist of a mix of fresh issue and an offer for sale, allowing early investors to partially exit. The company aims for a public listing by November, although the exact date has not been announced yet.
In its financials, Groww reported a threefold increase in net profit in FY25 to Rs 1,819 crore, while revenue rose 31% to Rs 4,056 crore. However, the revised fair market valuation of Groww was more than 30% below its 2021 fundraising peak of $3 billion.
Notably, Groww changed its domicile from the United States to India, incurring Rs 1,340 crore ($160 million) in taxes to the US government.
As Groww moves towards its IPO, it joins a growing list of Indian startups seeking to tap into the public markets. The successful listing could provide a significant boost to the Indian startup ecosystem.
