Groww gets SEBI's approval for $1B IPO
What's the story
Leading Indian investment platform Groww has received the green light from the Securities and Exchange Board of India (SEBI) to go public. The move paves the way for an initial public offering (IPO) that could raise up to $1 billion, valuing the Bengaluru-based fintech at $7-8 billion. This would be a major milestone in India's start-up and financial services ecosystem.
IPO process
Groww filed for IPO in May
Groww had confidentially filed for an IPO under SEBI's pre-filing mechanism on May 26. The company plans to list its equity shares, with a face value of ₹2 each, on the NSE and BSE mainboards. However, specifics about the issue size, fresh issue component, and offer-for-sale portion are yet to be revealed.
Valuation prospects
Fresh issue, OFS components yet to be finalized
As per Moneycontrol, Groww is likely to aim for a conservative valuation of $7-8 billion for the IPO, in line with current market sentiment and volatility. This could mean a 10-15% equity dilution, resulting in an IPO size between $700 million and $920 million. The company has raised around $393 million since its inception and closed a $200 million funding round at a $7 billion valuation with GIC and Iconiq Capital as participants.
Company profile
Backed by Tiger Global, Peak XV Partners, Ribbit Capital
Founded in 2016, Groww has become one of India's top wealthtech platforms. The fintech company offers online discount broking, direct mutual fund investments, and a range of other financial products. It competes with Zerodha and Upstox and is backed by Tiger Global, Peak XV Partners, and Ribbit Capital. Despite market volatility affecting retail participation, Groww continues to hold its ground in the industry.
Financial growth
FY25 profit jumps threefold to ₹1,819 crore
For FY25, Groww reported a threefold jump in net profit to ₹1,818 crore and a 31% increase in revenue to ₹4,056 crore. The company's IPO would make it one of the first fintech firms to go public after flipping its parent entity from the US to India. This move had cost the start-up $160 million in taxes to US authorities.