Groww Files Updated IPO Papers to Raise ₹7,000 Crore, Targets $9 Billion Valuation

New Delhi, September 1: Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, has announced that it has filed its updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise ₹7,000 crore, seeking a valuation of around USD 9 billion.

A Combination of Fresh Issue and Offer-For-Sale

The IPO will include a fresh issue of ₹1,060 crore and an Offer for Sale (OFS) of 57.41 crore shares by promoters and investor shareholders. The OFS is estimated to be between ₹5,000–6,000 crore.

Co-Founders Named as Promoters

The company has named its co-founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal as promoters. They collectively hold 27.97% of the company. Each founder will sell up to 1 million shares, translating to just 0.07% of total equity, while retaining a 20% lock-in for 18 months from listing.

Furthermore, several key investors Peak XV Partners, YC Holdings II, Ribbit Capital, GW-E Ribbit Opportunity, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund, L.P., will also pare their stakes. Groww is backed by Tiger Global and Microsoft CEO Satya Nadella.

Brand Building Main Aim For Fundraising

According to the UDRHP, the company will use ₹225.00 crore for brand building and performance marketing, with ₹205.00 crore, going towards Groww Creditserv Technology (NBFC arm). Additionally, the company will utilise ₹167.5 crore for Groww Invest Tech (MTF business), and ₹152.5 for its cloud infrastructure. The balance amount will be used for inorganic growth and general corporate purposes.

Strong Financial Performance

Groww’s revenue was ₹40,616.5 million in FY25, increasing from ₹27,959.9 million in FY24. However, the company reported negative operating cash flows in FY25 and Q1. FY25 net profit was ₹1,824 crore, while Q1 FY26 net profit was ₹378 crore. Contribution margin was at 85%, while the net profit margin was at 44%. The platform’s marketing spend stood at ₹4,875.8 million in FY25, which was about 30.5% of total expenses.

India’s Largest Stockbroker

Groww has become India’s largest stockbroker with 12.6 million active clients and more than 26% retail market share as of June 2025. The company’s market presence is in 98% of India’s pin codes and its 81% active users are from beyond the top-6 cities. The company’s customer engagement is at 77.7% for three-year retention rate, and 80% of new years are acquired by Groww organically. Groww has facilitated ₹34,000 crore in SIP inflows in FY25. This accounted for 11.8% of the total industry flows. The company was established in 2016 and has its headquarters in Bengaluru, Karnataka, India.

REF: https://www.bseindia.com/corporates/download/382740/IPO Prior/GROWWUDRHP1_20250916204648.pdf

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