Zerodha rival Groww gets SEBI approval for $1 billion IPO, aims for $7 billion valuation

Bengaluru-based Billionbrains Garage Ventures, the parent company of stockbroking firm Groww, has secured approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) that could raise as much as $1 billion, PTI reported.

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The listing is expected to value the company at about $7 billion, positioning it among the largest public market debuts by a new-age financial services company in India. The offering will include both a fresh issue of shares and an offer for sale (OFS) by existing investors.

Groww, which filed its draft red herring prospectus (DRHP) in May through the confidential pre-filing route, follows PhysicsWallah in receiving approval this year under the still-new mechanism. The route allows companies to delay public disclosure of draft papers until later in the process, offering greater flexibility around timing and structure.

Founded in 2016, Groww has grown into the country’s largest stockbroker, with more than 12.3 million active clients and a 26% share of the market as of July 2025. The company reported revenue of Rs 4,056 crore and profit after tax of Rs 1,818 crore in fiscal 2025, according to corporate filings.

Earlier this year, Groww raised $200 million from Singapore’s sovereign wealth fund GIC and existing backer Iconiq Capital, at a $7 billion valuation. Its investor base also includes Peak XV Partners, Tiger Global, Ribbit Capital, Y Combinator Continuity, and Microsoft chief executive Satya Nadella.

The Zerodha rival has raised a total of about $600 million since inception. Its journey to an Indian listing involved a complex restructuring — Groww completed a reverse flip of its holding entity from the United States to India, incurring a one-time tax outgo of $160 million. The firm posted a net loss of Rs 805 crore in fiscal 2024 due to that shift, despite healthy operating profits.

The IPO proceeds will be used to bolster technology infrastructure and fuel expansion. JPMorgan, Kotak Mahindra Capital, Citigroup, Axis Capital, and Motilal Oswal Securities are advising the company on the offering.