Broking major Groww files for Rs 6,000-7,000 crore IPO, aims for a November listing

Groww files for IPO, to raise Rs 1,060 crore

Groww - India’s largest wealth-tech platform by active investors - has filed for Rs 6,000-7,000 crore initial public offering (IPO), potentially paving the way for one of the most profitable publicly listed startups in the country.

The company also plans to raise Rs 1,060 crore in primary capital, while Rs 5,000-6,000 crore will be the offer for sale (OFS) portion by existing investors. The updated draft red herring prospectus, filed with market regulator Sebi on September 16, showed that the founders intend to offload only 0.07 percent stake in the company.

Early investors Peak XV, Y Combinator, Ribbit Capital, and Tiger Global are likely to sell shares in the IPO, while the founders have a 20 percent stake lock-in for 1-1/2 years from the time of listing.

Potential Listing Date

The Bengaluru-based brokerage firm is likely to finalise the IPO price band by the middle of October and is aiming at a November listing.

Started in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal - all former employees of e-commerce player Flipkart - the founders hold 27.97 percent stake in the company and will be classified as promoters.

Financials

Groww reported Rs 378 crore as net profit during Q1FY26, which is an increase of 11% on year. The company's revenue for the period stood at Rs 904 crore, a 10 percent decline from Rs 1,000 crore the company reported in Q1 FY25.

To be sure, most of the company's competitors have seen a much steeper decline as Sebi's regulations to curb Futures and Options trading reduced the revenue and profit of several brokers by 20-30 percent.

For FY25, the net profit rose three-fold to Rs 1,819 crore while the revenue grew 31 percent on year to Rs 4,056 crore. Groww’s net profit margin is around 45 percent, and the contribution margin of 85 percent is among the highest in the industry.

The company recently signed an agreement to acquire Fisdom to expand its wealth product offering, and has launched commodities for select users.

Groww is expected to grow its margin trading facility (MTF) lending product over the next couple of years. Together, these verticals are expected to contribute to the company’s revenue and profit growth.

Strengths

Groww, which also runs an Asset Management Company, has around 18 million active investors, as per company data, while NSE data shows an active investor base of 12 million. The rest of the customers are using Groww for investing through BSE or other wealth-tech products.

In June 2025, Groww had a 26 percent market share among NSE’s active clients, making up for a 45 percent share in net addition of active users from June 2024 to June 2025. It also contributed to a 26 percent share in new demat account additions. As per Association of Mutual Funds of India data, 6 million new Systematic Investment Plan (SIPs) were created in June 2025, of which Groww added 2 million, implying that nearly one of three new SIPs were started on Groww during the month. The company had an 18.50% market share in active SIPs and 16% market share in unique mutual fund investors during June 2025.

Headwinds for Broking Firms

Broking firms are facing higher taxes on trading during the current fiscal and have been earning lower exchange rebates since the middle of the last financial year. The industry has also adjusted to stricter restrictions by Sebi on retail Futures & Options (F&O) trading since late last year. All this has resulted in players such as Zerodha and Angel One witnessing a 20-30 percent drop in revenue and profitability since Q4FY25.

Most of the leading brokers have lost customers for eight consecutive months in 2025, though Groww claims its wide range of products and wealth offerings may cushion the firm from change in the market sentiment or regulatory tightening.