Groww in talks to file for IPO, valuation pegged at $7-8 billion

Groww IPO

Stockbroking firm Groww has engaged in discussions with multiple investment bankers regarding its IPO, aiming to raise approximately $700 million at a valuation of $7-8 billion, sources told Moneycontrol.

"Groww has engaged with investment bankers to start their IPO process. However, the timeline has not been decided yet. It will based on the market conditions," a source told Moneycontrol.

The IPO comes less than a year after the firm completed moving the domicile of its holding company from US to India, joining the list of top fintech firms moving their bases back to home country amid favorable economic policies and expanding domestic market.

The Bengaluru-based company’s plans to list come even as the stock brokers in the country grapple with recent market regulator Sebi’s move to curb Futures and Options trading, citing speculation by small retail traders.

Since the regulation, the move has seen F & O trading drop 30 percent in December. The segment contributes around 50 percent of the overall revenue of the top stockbroking firms in the country.

Eye on Key Numbers

To put Groww’s valuation in context, Mumbai-based and listed stockbroking firm Angel One is valued at less than $3 billion.

Groww, which is among the leading full-stack financial services firm in India, surpassed its rival Zerodha last year in terms of number of active investors.Groww added more than 50 lakh users till November 2024, more than double the number it had signed up last year. It has widened the lead over closest rivals Zerodha and Angel One over the last year.

In fact, Groww’s lead over Zerodha is around 50 lakhs now. Groww has around 1.3 crore active investors oin the platform as of December 2024 data available with market exchanges, while Zerodha has around 81 lakh active investors.Angel One has around 78 lakh active investors.

The Bengaluru-based discount broker saw its consolidated operational profit rise 17 percent to Rs 535 crore in the year ended March 2024, compared with Rs 458 crore it had reported a year back. Its consolidated revenue for FY23 stood at Rs 1,435 crore.

The one-time domicile tax of Rs 1,340 crore resulted in Groww posting a Rs 805-crore net loss at the consolidated level. Groww has moved its registered office from Delaware in the US to Bengaluru during the last fiscal.