Groww: Key Developments in Fintech Unicorn’s Journey

Groww has been a significant player in the fintech sector, as Viggo Investment Pte. Ltd. is currently seeking approval from the Competition Commission of India for a 2.143% stake acquisition in this fintech unicorn.

Investment and Valuation

The fintech unicorn Groww is aiming to raise approximately $200 million in its pre-IPO fundraising round. This deal could position the Bengaluru-based stockbroking platform with a value between $6.5 billion and $7 billion.

Previously, Groww was valued near $3 billion after securing $251 million in its Series E round in October 2021, and there has been no new funding since then. Under the leadership of Lalit Keshre, the firm has accumulated nearly $400 million from notable investors such as Peak XV, Tiger Global, Ribbit Capital, and YC Continuity.

Approval and Future Plans

Recently, Groww received the CCI’s go-ahead to issue bonus shares to its current investors in preparation for its Initial Public Offering (IPO).

Reports indicate that Groww is targeting to generate around $1 billion through the IPO, with a valuation objective set between $6 billion and $8 billion.

Financial Performance

In FY24, Groww experienced a notable increase in revenue from operations, reaching Rs 3,145 crore. However, despite this substantial topline growth, the company noted a net loss of Rs 805 crore for the fiscal year. This loss is significantly impacted by a one-time tax expense of Rs 1,340 crore associated with its relocation of domicile to India.

Industry Positioning

As it prepares for public listing, Groww is joining the ranks of established fintech unicorns like Paytm and MobiKwik which have already gone public. Additionally, Pine Labs and PayU are expected to launch their IPOs by the close of FY26. Notably, Razorpay has also recently transitioned into a public company.