Groww in talks to launch IPO, looks to raise $700 mn for $7-8 bn valuation

Groww recently shifted its headquarters from the US to India less than a year ago, a relocation that incurred the fintech a tax expense of Rs 1,340 crore

Bengaluru-based fintech firm Groww is engaging with multiple investment bankers to explore the possibility of launching its initial public offering (IPO), according to a report by Moneycontrol, quoting sources.

 

The company aims to raise approximately $700 million, targeting a valuation between $7 billion and $8 billion. The report indicates that while the discussions are underway, the timeline for the IPO has not been finalised, as it will depend on prevailing market conditions.

 

The Groww app is an online investment platform in India that offers a range of products and services, including investing and trading. It also offers payment services and loan applications. 

 

Groww has emerged as a leader in India’s financial services sector, overtaking Zerodha in terms of active investors. The platform boasted 13 million active users as of December 2024, compared to Zerodha’s 8.1 million and Angel One’s 7.8 million. Groww’s user base saw remarkable growth in 2024, with over five million new users joining the platform, more than doubling its numbers from the previous year.

 

Financially, Groww has demonstrated strong performance. The firm reported a 17 per cent increase in consolidated operational profit, reaching Rs 535 crore for the financial year ending March 2024, up from Rs 458 crore the previous year.

 

Groww shifts HQ to India from US

This report follows Groww’s strategic shift of its holding company’s domicile from the United States to India, a transition completed in March 2024. This shift aligns with a broader trend among top fintech companies seeking to benefit from India’s favourable economic policies and the expanding domestic market. The shift, incurred Groww a tax expense of approx Rs 1,340 crore (around $160 million).

 

Last year, Zepto also moved its headquarters from Singapore to Mumbai, then Bengaluru. Similarly, PhonePe and Razorpay also relocated their offices to India from Singapore and US, respectively.

 

Regulatory changes in stockbroking

Groww’s IPO plans also surfaced amid regulatory changes in the stockbroking industry, particularly the Securities and Exchange Board of India’s (Sebi) recent measures to curb Futures and Options (F&O) trading. These regulations, aimed at reducing speculative activities among small retail traders, have resulted in a 30 per cent decline in F&O trading volumes in December 2024. The F&O segment is significant, contributing approximately 50 per cent of the revenue for major stockbroking firms.