Zerodha rival Groww to file updated DRHP with SEBI for IPO, targets November listing: Report

Groww, one of India’s largest online investment platforms, is reportedly preparing to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as early as next week, according to an ET report. 

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The report said that the company is targeting a public listing by November, with an initial public offering size of $700 million to $1 billion. At that range, Groww is seeking a valuation of $7 billion to $9 billion.

The offering will comprise a mix of fresh issue and an offer for sale, enabling early investors to partially exit. Groww counts among its investors Y Combinator, Peak XV Partners, Tiger Global and Ribbit Capital. Y Combinator joined at the seed stage in 2018; Peak XV and Ribbit Capital participated in its Series A and B rounds; and Tiger Global led an $83 million round in 2021 that pushed Groww into the unicorn club.

The Bengaluru-based company filed its initial draft papers confidentially on May 26 through its registered entity, Billionbrains Garage Ventures Ltd, under Regulation 59C (5) of the SEBI ICDR Regulations, which permits companies to seek regulatory feedback before a public filing. Groww received SEBI approval to proceed with the IPO in late August.

The listing will mark one of the first by an Indian startup to follow a “reverse flip” of its domicile back from the United States to India. That move cost Groww Rs 1,340 crore ($160 million) in taxes to the US government, based on a revised fair market valuation that was more than 30% below its 2021 fundraising peak of $3 billion.

Groww has raised $596 million in equity funding to date, most recently closing a $200 million round at a $7 billion valuation, led by Singapore’s sovereign wealth fund GIC and Iconiq Capital. The company reported a threefold increase in net profit in FY25 to Rs 1,819 crore, while revenue rose 31% to Rs 4,056 crore.

Founded in 2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww began as a mutual fund investment app but has since expanded into stockbroking, digital lending, payments and wealth management.