Groww takes first step toward IPO, files draft papers with SEBI to raise up to $1 billion

Indian stock broking major Groww has confidentially filed draft papers for an initial public offering with the Securities and Exchange Board of India, making its first formal move toward a stock market listing.

The Bengaluru-based company submitted its Draft Red Herring Prospectus under SEBI’s pre-filing mechanism through its parent, Billionbrains Garage Ventures Ltd. This route enables companies to seek regulatory feedback without immediate public scrutiny, and offers greater flexibility on issue structure and timing.

The IPO is expected to raise between $700 million and $1 billion, with about 10% of the company’s equity likely to be offered, according to media reports. The listing will comprise both a fresh issue of shares and an offer for sale and is planned on the BSE and NSE. Each equity share will carry a face value of Rs 2.

The offering comes amid a broader trend of Indian startups opting for the confidential filing route, which has been permitted under SEBI’s Regulation 59C(5) since 2022. Others that have used the mechanism include logistics platform Shiprocket, edtech startup PhysicsWallah, Tata Capital, and boAt’s parent Imagine Marketing.

The mechanism allows companies to alter issue size by up to 50% and delay final public filings for as long as 18 months after receiving SEBI approval. Singapore sovereign wealth fund GIC is anchoring Groww’s pre-IPO round through Viggo Investments, investing $150 million for a 2.14% stake. 

The round, which also includes participation from existing backers such as Tiger Global, is expected to raise $250 million to $300 million and value Groww at around $7 billion post-money—more than double its $3 billion Series E valuation from 2021.

Groww's market presence

Founded in 2016, Groww has rapidly scaled its retail investing platform to become the country’s largest broker by number of active clients. As of March 2025, the company accounted for 26.26% of the National Stock Exchange’s active investor base, rising from 23.28% a year earlier.

It added 3.4 million active accounts in FY25, bringing its total user base to 12.9 million. Financially, Groww posted revenues of Rs 3,145 crore in FY24, more than double its previous year’s Rs 1,277 crore. Operating profit stood at Rs 535 crore, up from Rs 458 crore in FY23. However, the company reported a net loss of Rs 805 crore for the year ended March 2024 due to a one-time tax expense of Rs 1,340 crore related to its shift in domicile from the U.S. to India.

Groww had reported a net profit of Rs 449 crore the previous year. The IPO is set to be managed by a syndicate of investment banks including JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets, Axis Capital, and Motilal Oswal Securities.

While Groww’s public market ambitions signal long-term confidence, the timing comes amid a downturn in investor sentiment and tightening regulations affecting India’s broking sector. Active user counts for the top four brokers, including Groww and Zerodha, declined for a third consecutive month in April. Groww itself saw a drop of nearly 75,000 active investors that month.