Groww Receives Approval for Initial Public Offering

Groww, a prominent digital investment platform, has gained nod from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), as reported by Moneycontrol. The anticipated size of the IPO is projected to be between $800 million and $1 billion. This development follows the recent fundraising efforts by Groww’s parent company, Billionbrains Garage Ventures Ltd, which secured Rs 1,735 crore (approximately $200 million) in June from Singapore’s sovereign wealth fund, GIC, alongside existing investor ICONIQ Capital, as detailed by Startup Superb.

Background of Groww’s IPO Plans

Based in Bengaluru, the fintech enterprise submitted its draft red herring prospectus (DRHP) on May 26 via the confidential method. If the IPO proves successful, Groww would emerge as one of the initial fintech companies to be publicly listed in India after executing a reverse flip of its holding company from the United States. This transformation incurred a significant expenditure, with the startup paying $160 million in taxes to US authorities.

Funding and Valuation History

To date, Groww has successfully accumulated approximately $600 million from various investors, including Peak XV, Tiger Global, Ribbit Capital, and YC Continuity. The last assessed valuation of the firm stood around $3 billion, following its Series E funding round that raised $251 million in October 2021.

Financial Performance and Future Outlook

In terms of financial performance, Groww reported a remarkable 31% increase in revenue, amounting to Rs 4,056 crore in FY25, while its profit experienced a threefold surge to Rs 1,819 crore. In FY24, the company recorded revenues of Rs 3,145 crore with an operating profit of Rs 545 crore. However, a one-time tax expense of Rs 1,340 crore related to its domicile switch resulted in a net loss of Rs 805 crore for FY24. The audited numbers for FY25 are yet to be submitted to the Registrar of Companies (RoC).