Investing in Groww IPO? Check key risks, strengths before you decide

Groww IPO Price Band: Groww IPO has been priced in the band of ₹95 to ₹100 per share, with a minimum lot size of 150 shares

Groww IPO: The initial public offering (IPO) of Billionbrains Garage Ventures, the parent company of the Indian online investment platform, Groww, is set to open for subscription on Tuesday, November 4, 2025. The ₹6,632.3 crore issue comprises a fresh issue of 106 million equity shares amounting to ₹1,060 crore and an offer for sale (OFS) of 557.2 million equity shares amounting to ₹5,572.3 crore. 

 

Under the OFS, investors Peak VI Partners Investments, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI, Kauffman Fellows Fund, Alkeon Innovation Master Fund, Propel Venture Partners and Sequoia Capital Global Growth Fund III will divest part of their holdings.

 

The three-day bidding window will close on Friday, November 7, 2025, with the allotment of shares expected to be finalised on Monday, November 10, 2025. The shares are likely to list on the NSE and BSE on Wednesday, November 12, 2025.

 

The IPO has been priced in the band of ₹95 to ₹100 per share, with a minimum lot size of 150 shares. 

 

MUFG Intime India is the registrar, while  Kotak Mahindra Capital Company, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors are acting as the book-running lead managers for the issue.

 

According to the RHP, Groww proposes to use ₹152.5 crore from the fresh issue towards cloud infrastructure and ₹225 crore for brand building and marketing. Another ₹205 crore will be utilised for its NBFC arm, GCS, to strengthen its capital base, and ₹167.5 crore for its subsidiary GIT for the MTF business. The remaining funds will be used for potential acquisitions and general corporate purposes. 

Here are the key risks associated with investing in Groww IPO:

Market volatility risks: Groww operates in India’s investment and wealth management sector, where any slowdown or disruption in financial markets, driven by economic, policy, or global conditions, could materially affect its business and financial position. Its performance is closely linked to overall market stability and investor sentiment.

 

Dependence on technology and platform: The company relies heavily on uninterrupted access to its technology platform for smooth operations. The performance, reliability, and capacity of its transaction-processing system and network infrastructure are crucial for attracting and retaining customers and delivering services. Any system failures or disruptions could negatively affect the availability or functionality of its website, mobile applications, or platform, potentially impacting its business.

 

Regulatory oversight: Groww operates under the supervision of regulatory and statutory authorities in India, including Sebi, RBI, and stock exchanges. Any changes or amendments to the applicable regulatory framework may have a significant impact on its business and operations, as per the RHP.

 

Dependence on customer acquisition: The company’s growth relies on its ability to attract and retain customers on its platform in a cost-effective manner. High levels of customer usage and engagement with its products and services are key indicators of platform interest. Failure to achieve this could negatively affect its operations, financial condition, and results.

 

Profitability risks: Groww reported losses in FY24 but recorded profits in FY23, FY25, and the three months ending June 30, 2025 and 2024. Inability to achieve sufficient revenue growth or effectively manage expenses and cash flows could jeopardise its sustained profitability. 

Here are the key competitive strengths of Groww, as per the RHP:

Solid brand recognition: Groww is a widely recognised and preferred investing brand across cities, towns, and villages in India. According to Google Trends and NSE data for Fiscal 2025, Groww ranks highest in search interest among the top 10 brokers, reflecting the trust, popularity, and customer loyalty the platform has built, as per the Redseer Report.

 

Strong customer retention: The company maintains high customer retention and engagement, with 77.7 per cent of users staying active after three years on the platform. The company fosters long-term relationships by offering personalised content, updates, and tools that help customers make informed investment decisions. Cohort retention in the first quarter after acquisition has consistently ranged from 84.8 per cent to 92.98 per cent for cohorts from Fiscal 2022 to March 2025, highlighting strong customer loyalty and inelasticity to pricing.

 

In-House technology: Groww has developed most of its technology stack in-house, allowing the company to provide a superior customer experience at lower cost. Custom-built systems and infrastructure enable quick adaptation to customer demands and regulatory changes, supporting continuous product innovation, platform stability, and uninterrupted business operations.