Groww triples profit to Rs 1,819 crore in FY25, raises $200 million in funding ahead of IPO

Billionbrains Garage Ventures, the Bengaluru-based parent of Zerodha rival Groww, posted a dramatic surge in profitability for FY25, reporting net profit of Rs 1,819 crore—a threefold jump over the previous year—on revenue of Rs 4,056 crore, ET reported. 

The company also raised $200 million in funding at a $7 billion valuation, led by Singapore’s sovereign wealth fund GIC and long-time investor Iconiq Capital, the report said.

The funding round and improved earnings come as Groww moves ahead with its plans to go public. In May, the company filed confidential draft IPO papers with the Securities and Exchange Board of India (SEBI) to raise between $700 million and $1 billion. The issue will be managed by JP Morgan, Kotak Mahindra, Citigroup, Axis Capital and Motilal Oswal, and is expected to include both a primary component and a secondary sale by existing shareholders.

Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal as a direct mutual fund distribution platform, Groww has evolved into a full-service wealthtech firm and is now the largest stockbroker in India by number of active clients. As of February 2025, the firm reported 13 million active investors, compared with 8 million for Zerodha and 7.7 million for Angel One, based on data from the National Stock Exchange.

In the previous fiscal year (FY24), Groww had posted revenue of Rs 3,145 crore and an operating profit of Rs 545 crore, but the company ended the year with a net loss of Rs 805 crore after accounting for a one-time Rs 1,340 crore tax expense incurred during its reverse-flip from the US to Indian domicile structure. That tax was part of its formal transition from Delaware to Bengaluru.

The turnaround in FY25 comes at a time when the broader stockbroking sector is facing tighter regulatory scrutiny. Recent curbs introduced by SEBI on derivatives trading—including restrictions on F&O leverage and changes to broker incentive structures—have affected trading volumes and investor activity. Angel One reported a 49% year-on-year drop in net profit to Rs 174 crore for the March quarter, with revenue falling 22% to Rs 1,056 crore. Zerodha has not yet reported its FY25 numbers.