Groww block deal jumps to $600M as demand surges
What's the story
A block deal in Billionbrains Garage Ventures Ltd., the parent company of leading wealth-tech firm Groww, has been upsized from its initial base size of some $500 million to about $600 million. The increase comes on the back of high demand for shares. The transaction was executed at ₹180/share, reported Moneycontrol, citing sources familiar with the matter.
Investor participation
Diverse group of investors participate in block trade
The block trade saw participation from a diverse group of investors, including sovereign wealth funds, global long-only funds, mutual funds, and life insurance firms. On May 11, Moneycontrol reported that the firm's investors Peak XV Partners Investments VI-1, Sequoia Capital Global Growth Fund III - U.S./India Annex Fund, Y Combinator's YC Holdings II LLC and Ribbit Capital entities were likely sellers in the transaction.
Market performance
Deal comes after lock-in period expiry for IPO investors
Groww's share price has surged over 40% in the last six months. The block deal comes after the expiry of the lock-in period for IPO investors. The deal had a floor price of ₹177/share with Kotak Mahindra Capital and JP Morgan advising on it. A 90-day lock-up period on further share sales will apply after this transaction.
Financial outlook
Strong operational performance in March quarter
Despite the market fluctuations, Groww has shown strong operational performance in the March quarter with a 24% sequential revenue growth and a 25% quarter-on-quarter net profit increase. The management had also indicated during an earnings call that both Fisdom and Groww Mutual Fund are likely to break even by FY28. ARPU levels have also recovered to pre-November 2024 levels, indicating a positive financial trajectory for the company.