The Peak XV-backed firm is concentrating on a public itemizing by November with an initial public offering (IPO) measurement of $700 million to $1 billion, at a valuation of $7-9 billion, as reported by ET earlier.
The difficulty will comprise a recent situation and a proposal on the market, giving early buyers partial exits. It couldn’t be instantly ascertained which buyers will probably be promoting shares within the IPO.
Groww counts Y Combinator, Peak XV Companions, Tiger International, and Ribbit Capital amongst its main buyers.
On August 28, ET reported that Groww had secured Sebi nod for launching its IPO. The corporate had on Could 26 filed draft papers with the market regulator by way of the confidential route. Publish-IPO, the corporate would checklist on each the NSE and BSE.
The submitting was made by Billionbrains Storage Ventures Ltd, Groww’s registered entity, below Regulation 59C (5) of the Sebi ICDR Laws, which permits confidential submissions earlier than a proper draft prospectus. The route has been more and more adopted by new-age know-how companies searching for regulatory suggestions earlier than going public.
Groww didn’t reply to ET’s queries.
Groww can be among the many first startups to checklist after completing a reverse flip of its dad or mum entity from the US to India. The corporate had paid Rs 1,340 crore ($160 million) in taxes to the US authorities, based mostly on a newly-assessed honest market worth, a reduce of over 30% from the $3 billion valuation at which it final raised funds in 2021.
Walmart-owned digital funds agency PhonePe, which also shifted back its domicile to India from Singapore, can also be slated to file IPO papers, aiming to raise $1.2-1.5 billion.
Groww has thus far raised about $596 million in fairness funding, in keeping with knowledge from Tracxn. It just lately closed a $200 million round at a $7 billion valuation, with Singapore’s sovereign wealth fund GIC and present backer Iconiq Capital taking part. ET was the first to report on March 26 in regards to the impending GIC deal.
Groww, which started as a mutual fund funding platform, posted a greater than threefold leap in web revenue in FY25 to Rs 1,819 crore, whereas income rose 31% to Rs 4,056 crore, making it one of the worthwhile startups within the nation.
Early investor Y Combinator joined Groww on the seed stage in 2018, whereas Peak XV Companions and Ribbit Capital took half in its Collection A and B rounds in 2019. Tiger International led an $83 million round when the agency hit a $1 billion valuation in 2021.
The worth of those investments is anticipated to multiply manifold as soon as the corporate goes public.
Whereas stockbroking stays its major income driver, Groww has diversified into digital lending, funds, and wealth management to broaden its revenue streams.
The corporate has signed a definitive settlement to acquire PayU-backed wealthtech startup Fisdom in a $150 million all-cash deal, which is awaiting Sebi approval. Groww can also be launching its wealth administration platform, W, to supply customised providers for long-term buyers and compete with the likes of Dezerv and Angel One-backed Ionic Wealth.
Based in 2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww is the nation’s largest stockbroker by energetic purchasers. Nevertheless, after years of regular enlargement, its energetic shopper base slipped this 12 months.
In keeping with NSE knowledge, Groww’s energetic customers fell to 12.07 million in August from 13 million in February. Like different stockbrokers, the corporate has been impacted by Sebi’s tighter guidelines on futures and choices (F&O) buying and selling over the previous 12 months, after a number of findings of heavy retail losses within the section. On Friday, Sebi chairman Tuhin Kanta Pandey stated the regulator will probably be issuing a session paper on F&O contracts.