Online stock-broking and investment platform Groww has secured approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) estimated between $800 million and $1 billion, according to reports.
The Bengaluru-based company had filed a confidential draft red herring prospectus (DRHP) with SEBI on May 26, 2025, opting for the private filing route. The IPO will be managed by JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd, appointed as lead bankers by parent firm Billionbrains Garage Ventures Pvt. Ltd. Groww has not yet issued an official statement on the approval.
IPO Amid Sector Headwinds
Groww’s public debut comes as discount brokerages face industry-wide stress. In the first half of FY25, platforms including Zerodha, Angel One, and Upstox lost nearly 2 million active investors due to regulatory tightening and weaker retail participation.
- June 2025 alone saw a net outflow of 600,000 clients across these firms.
- Stricter SEBI rules on contract durations, margin norms, and taxation have reduced retail enthusiasm in the derivatives market.
- Groww itself lost ~600,000 active users since January, while Zerodha, Angel One, and Upstox shed 550,000, 450,000, and 300,000 users, respectively.
Financial Performance Remains Strong
Despite user attrition, Groww has reported robust financial growth.
- FY25 revenue rose 31% to ₹4,056 crore, while net profit tripled to ₹1,819 crore.
- In FY24, revenue stood at ₹3,145 crore with an operating profit of ₹545 crore, but a one-time ₹1,340 crore tax outgo from restructuring pushed the company to a net loss of ₹805 crore.
- Audited FY25 financials are yet to be filed with the Registrar of Companies.
Backed by Global Investors
Since inception, Groww has raised around $600 million from marquee global investors including Peak XV Partners, Tiger Global, Ribbit Capital, and YC Continuity. The company was last valued at $3 billion after its $251 million Series E round in October 2021.
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