With a Valuation of $7-8 Billion, Groww is in Negotiations to Apply for an IPO

Nitin Konde, Varun Bhardwaj

Jan 14, 2025 — 2 min read

Groww Eyes IPO with a Valuation of $7-8 Billion

According to a media report, stockbroking company Groww has been in talks with several investment bankers about its initial public offering (IPO), hoping to earn about $700 million at a valuation of $7-8 billion. Groww has begun the IPO process by working with investment bankers. The timing hasn't been determined yet, though. The report went on to say that it would depend on the situation of the market.

Less than a year has passed since the company finished relocating its holding company's headquarters from the US to India, becoming one of the leading fintech companies to return to their home countries in the face of advantageous economic policies and a growing domestic market. The Bengaluru-based business intends to list at a time when the nation's stock brokers are struggling with a recent decision by market regulator Sebi to restrict trading in futures and options, citing speculation by small retail traders.

Groww Showing Strong Performance in the Market

Groww's valuation is contextualised by the fact that Angel One, a Mumbai-based and publicly traded stockbroking firm, is valued at less than $3 billion. In terms of active investors, Groww, one of India's top full-stack financial services companies, outperformed rival Zerodha last year.Groww more than doubled its user base from the previous year, adding over 50 lakh users by November 2024. Over the past year, it has increased its advantage over Angel One and Zerodha, its nearest competitors.

Groww presently leads Zerodha by over 50 lakhs. According to data from market exchanges as of December 2024, Groww has over 1.3 crore active investors on the site, whilst Zerodha has approximately 81 lakh active investors.There are over 78 lakh active investors in Angel One.

Shifting from Mutual Funds to Stock Trading

Groww began as a direct mutual fund platform before concentrating on stock trading and swiftly becoming the biggest broking app in the nation. Over 12 million traders are currently using Groww's application. The business ended the previous fiscal year with INR 3,145 crore in total revenue and INR 805 crore in net losses.

The firm sponsored by Peak-XV Partners claimed an operating profit of INR 535 crore, but the one-time tax payment from the flip back to India was the reason for its net loss. In addition to trading stocks, Groww manages assets and extends credit through a non-banking financing company. The company provides consumer credit and check-out finance services via Groww Creditserv Technology. The lender had INR 731 crore in assets under control by March 2024.

This year, Groww is one of several Indian businesses aiming to go public. Various media outlets reported on January 13 that Ather Energy is seeking a public offering of $2.4 billion. The fintech company MobiKwik went public in December and is now valued at over INR 4,000 crore.