Groww To Make Confidential IPO Filing In Two Weeks: Report

Investment tech startup Groww is reportedly planning to file draft papers with markets regulator SEBI for an initial public offering (IPO) through a confidential pre-filing route in the next two weeks.

The confidential pre-filing route allows the company to withhold disclosure of details under the draft red herring prospectus (DRHP) until later stages.

As per Moneycontrol, the fintech unicorn is eyeing a “conservative” valuation of $7-8 Bn for its IPO in the face of ongoing market uncertainty.

The report further said that Groww is also raising $150 Mn in a pre-IPO round from Singapore-based asset management firm GIC. The round will value the Bengaluru-based startup at $7 Bn on a post-money basis.

In all, the fintech startup intends to raise $250-300 Mn in the pre-IPO round, which is likely to conclude in the next two weeks. Earlier, Groww was also said to be in talks with Tiger Global to participate in this round.

Groww declined to comment on Inc42’s queries on the development.

This comes just a day after Viggo Investment Pte Ltd, a wholly-owned subsidiary of GIC, sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Groww. On the same day, Groww paid INR 47.85 Lakh as a settlement to SEBI for alleged stock broker norms violations.

Founded by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww began its journey in 2017 as a direct mutual fund investment platform but later expanded into stock trading, futures & options, IPO and other financial products. It also operates an asset management business and was said to be looking to foray into the wealth management business under a separate brand ‘W’.

In preparation for its public listing, Groww shifted its base back to India from the US last year by paying a hefty tax of INR 1,340 Cr to the US government. Owing to this one-time tax payout, Groww reported a net loss of INR 805 Cr in FY24. Total revenue stood at INR 1,435 Cr during the year under review.

Groww’s purported decision to opt for the confidential pre-filing route is part of a growing trend among Indian startups. Last year, foodtech major Swiggy floated its $10 Bn+ IPO after making a confidential filing.

Earlier this year, edtech unicorn PhysicsWallah and D2C audio and wearables brand boAt also took the confidential route for their respective IPOs. Prior to that, hospitality major OYO had also confidentially filed for an IPO but its public listing did not fructify.

Unlike the traditional route, where the company is mandated to launch its IPO within 12 months of getting SEBI’s approval, the pre-filing route allows the company to float an IPO within 18 months after SEBI’s go-ahead. Moreover, under this route, companies can also adjust the fresh issue component of their IPO  by up to 50% until the updated DRHP stage.

In the investment tech space, Groww competes against the likes of Zerodha, Angel One, CRED, and now, MobiKwik. In the broader fintech market, it locks horns with Moneyview, PhonePe, Razorpay, among others, which are also ramping up their IPO preparations.