IPO-bound Groww secures double-digit share in public bond issues in just three months of its launch

IPO-bound stock brokerage firm Groww has secured a double-digit share in three public bond issues within just three months of introducing fixed-income products, signaling a rapid expansion beyond its traditional equities and mutual fund businesses, Moneycontrol reported.

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Since launching bond offerings in June this year, the company has attracted between 10% and 12% of retail investors in the issues it distributed, making it one of the fastest platforms to scale in the fixed-income market, traditionally dominated by banks and offline distributors.

In the ICL Fincorp public bond issue, which carried a retail reservation of 8.74 lakh units, Groww enabled allotments of 1.09 lakh units, or 12.57%. In the Muthootu Mini Financiers issue, the platform facilitated 44,755 units out of the 4 lakh units reserved for retail investors, translating to an 11.19% share. In the Muthoot Mercantile issue, Groww enabled 68,392 units out of the 6.25 lakh reserved, again representing 11.19%.

The issues were open between mid-July and early September, with ICL Fincorp’s window running from July 31 to August 13, Muthoot Mercantile from July 16 to July 29, and Muthootu Mini Financiers from August 18 to September 1. Groww currently has an active subscription open for Edelweiss Financial Services bonds, which closes on October 16.

The expansion mirrors Groww’s strategy in other segments. The platform has emerged as India’s largest broker by active clients, holding a 27% share of monthly transacting users in cash equities and 26% in derivatives as of July 2025, according to industry trackers. In the IPO market, its share of retail allocation has averaged about 25% this year.

Mutual funds remain another key growth engine. Groww’s draft IPO prospectus shows the platform contributed Rs 3.4 lakh crore to the industry’s Rs 28.9 lakh crore SIP inflows in FY25, giving it an 11.8% share. Its SIP inflow share has nearly doubled in two years, climbing from 6% in June 2023 to 13 percent in June 2025.

In June 2025 alone, Groww accounted for one in three new SIP registrations, adding 2 million of the 6 million industry-wide. The platform counted 17 million active SIPs, representing an 18.5% share, and 9 million unique mutual fund investors, or 16%.

Industry observers attribute Groww’s gains to its direct-to-consumer model, organic acquisition strategy, and user-friendly interface. Over time, the company has broadened its product mix to include wealth management, commodities, and loans against shares. Analysts suggest the addition of bonds could accelerate diversification, as Indian households has increasingly look beyond equities and mutual funds toward fixed income and alternative assets.