Highlights
Groww, the stock broking startup, has gained approval from the Competition Commission of India (CCI) for the issuance of bonus shares to its current investors, in preparation for its upcoming Initial Public Offering (IPO).
Approval from CCI
A recent press release, reviewed by Startup Superb, indicates that the CCI has given the green light for certain shareholders of Billionbrains Garage Ventures Private Limited to acquire additional voting rights. This approval also includes the issuance of bonus convertible preference shares to all existing equity shareholders of Groww.
Details of the Proposed Transaction
The planned transaction involves the elimination of differential voting rights previously held by the founders of Groww. Additionally, bonus compulsorily convertible preference shares will be distributed to all current equity shareholders, comprising prominent investors such as Peak XV, Ribbit Capital, YC Holdings, and Tiger Global.
Recent Developments for Groww
This news follows a significant transition for Groww, which saw the company complete its re-domicile to India last year. The transition involved a regulatory filing with the National Company Law Tribunal (NCLT) in 2023, as the company reversed its India and US entities.
Funding and Valuation Ahead of IPO
Based in Bengaluru, Groww is currently engaged in discussions to secure $200 million in funding prior to its IPO, with a valuation estimated between $6 billion and $8 billion. So far, Groww has successfully raised nearly $400 million from esteemed investors including Peak XV, Tiger Global, Ribbit Capital, and YC Continuity.
Financial Performance
The company was valued around $3 billion after obtaining $251 million in its Series E funding round in October 2021, and it has not acquired any new funding since then. In FY24, Groww reported a remarkable revenue from operations amounting to Rs 3,145 crore. However, the company also faced challenges, recording a net loss of Rs 805 crore, largely attributable to a one-time tax payment of Rs 1,340 crore incurred during its re-domicile to India.