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Groww CEO Lalit Keshre
Online stockbroking giant Groww is reportedly in discussions with several investment bankers to launch an initial public offering (IPO) that could raise around $700 million at a valuation of $7-8 billion, according to multiple media reports.
The report said the Zerodha rival is assessing market conditions before deciding the timeline for its public listing.
Shifting base to India
These plans come less than a year after Groww completed shifting its holding company from the United States to India, a move that reportedly cost the company Rs 1,340 crore in one-time taxes.
By shifting its domicile, Groww joined a growing number of fintech startups and consumer Internet companies looking to take advantage of India’s expanding economy and favourable policies for a local listing.
Groww's market presence
Groww has built its user base by offering direct mutual funds and an easy-to-use stock trading platform, later evolving into a full-service financial services provider. It now claims more than 1.3 crore active investors, outpacing rivals such as Zerodha (81 lakh) and Angel One (78 lakh).
Financial performance
Groww's operating profit for FY24 stood at Rs 535 crore, while revenue reached Rs 3,145 crore. However, the one-time tax payout related to the domicile shift led to a consolidated net loss of Rs 805 crore.
The expected IPO comes at a time when stockbrokers are grappling with recent measures by the Securities and Exchange Board of India to curb trading in Futures and Options, an area that accounts for a large chunk of many brokers’ revenue.
Nevertheless, Groww’s rapid user growth and diversified offerings—including a non-banking financial entity and an asset management arm—have kept the company in a strong position.