Groww IPO: Brokerages weigh high growth against rich valuation amid strong subscription; should you subscribe?

Investor sentiment around Groww’s parent firm Billionbrains Garage Ventures Ltd remained buoyant on the second day of its Rs 6,632-crore IPO, with the public issue getting full subscription and retail quota getting booked 3 times. Analysts are divided whether the online investing platform’s premium valuation is fully justified by its rapid growth and profitability.

Most brokerages acknowledge Groww’s strong user traction, brand equity, and scalability in India’s expanding digital investing market -- yet caution that the issue appears richly priced and best suited for long-term investors rather than short-term gains.

Groww commands strong brand and user growth

Groww has built a dominant position in India’s retail investment landscape, with more than 47.9 million active NSE users and a presence across 98 percent of India’s pin codes. The platform’s user base has grown at a 52.7 percent CAGR since FY23 and is the only Indian investment app to cross 100 million cumulative downloads. Over 80 percent of new customers are acquired organically, demonstrating strong word-of-mouth traction and low acquisition costs. Analysts view this mix of technology-driven scalability and customer loyalty as Groww’s key differentiator in a sector poised for structural expansion.

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Groww financial performance and use of IPO proceeds

Groww’s FY25 revenue rose 49.6 percent year-on-year to Rs 3,902 crore, while adjusted EBITDA climbed to Rs 2,306 crore and net profit to Rs 1,824 crore, marking a sharp turnaround from the Rs 805-crore loss in FY24. For Q1 FY26, revenue stood at Rs 904 crore with profit of Rs 378 crore.

Of the total issue, Rs 1,060 crore is fresh equity, while Rs 5,572 crore constitutes an offer-for-sale by existing shareholders. The proceeds from the fresh issue will be used to strengthen cloud infrastructure, marketing, and capital for its NBFC and margin-trading subsidiaries.

Groww IPO valuation and brokerage views

At the upper end of the Rs 95-100 price band, Groww commands an estimated post-issue market capitalisation of Rs 61,700 crore and a valuation of 33-41 times FY25 earnings, depending on the brokerage model. Opinions diverge sharply at this level.

Anand Rathi has issued a Subscribe--Long Term recommendation, saying that Groww’s scale, expanding product suite, and improving profitability make it a compelling structural play in India’s digital investment ecosystem. It cited strong user retention -- over 77 percent of users active for three years continue to transact on the platform -- and expects further improvement as operating leverage strengthens. However, at the offer price, Anand Rathi called the IPO ‘fully priced’.

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Angel One has a Neutral stance, acknowledging Groww’s impressive growth trajectory but cautioning that valuations leave limited near-term upside. The brokerage flags high dependence on broking revenues, potential sensitivity to trading volumes, and regulatory risks in both its brokerage and NBFC segments.

Master Capital Services suggests that investors may consider the IPO as a potential long-term investment opportunity. The brokerage cited 15-17 percent expected CAGR for India’s Rs 1.1-trillion investment and wealth-management market through FY30, and Groww’s positioning as a digital-first beneficiary of that expansion.
Industry context and outlook

Digital investing in India remains at a nascent stage, with active demat accounts covering barely 5 percent of the population. Brokerages have a consensus view that the long-term runway for platforms such as Groww is substantial as financial literacy, internet access, and investor participation deepen beyond metros. However, they also underline that valuations already reflect much of this optimism.

The IPO, which closes on Friday, 7 November 2025, has been fully subscribed, led by strong retail demand. Allotments will be finalised on 10 November, with listing slated for 12 November on the NSE and BSE.

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