Groww’s IPO Conundrum, Infra.Market Eyes $83 Mn & More

Groww’s Massive VC Cashout

Earlier this week, Groww filed its updated DRHP for a massive INR 7,000 Cr public listing. Yet, the fine print of the draft papers reveals a sore reality – the IPO appears to be a grand exit for its early backers rather than growth capital for India’s largest discount broking platform.

The Lopsided IPO: Groww’s IPO allocates just INR 1,060 Cr for fresh issue, while earmarking 85% for OFS. This means that nearly INR 6,000 Cr will flow directly to existing investors, leaving minimal funds for the unicorn’s tech upgrades and expansion plans.

The VC Bonanza: Early backers are positioned for spectacular returns that dwarf most VC success stories. Peak XV Partners stands to make a staggering 1,611 Cr (53.3X return), while Y Combinator expects to pocket INR 1,047 Cr (29.5X). Ribbit Capital and Tiger Global are slated to cash in INR 668 Cr (44.2X) and INR 600 Cr(4.6X), respectively.

The Flip Side: Beyond the VC cashout concerns, Groww also faces mounting pressure on its core revenue engine. SEBI’s crackdown on F&O trading, which comprised 85% of its FY25 revenue, is already showing impact with brokerage fees declining 17% YoY in Q1 FY26. Macroeconomic factors and raging market volatility in the past year have led to the exodus of traders, adding to Groww’s challenges.

The De-Risk Directive: Recognising its vulnerabilities, Groww has been aggressively diversifying into credit, mutual funds, and wealth advisory. This strategic pivot is showing promise – mutual fund commissions contributed 20% to its revenue in FY25 while AUM grew to INR 50,000 Cr. The platform’s 18.07 Mn monthly active users also provide strong network effects for expansion.

As Groww gears up for one of India’s largest fintech public debuts, will its strong diversification moat be enough to overshadow the optics of a VC-dominated exit? Let’s find out…

From The Editor’s Desk

BigBasket’s FY25 Loss Zooms: The quick commerce major’s net loss surged 42% to INR 2,006.8 Cr in FY25 from INR 1,415.2 Cr in the year-ago fiscal. Meanwhile, operating revenue declined 2% YoY to INR 9,866.7 Cr in the fiscal under review. 

Gameskraft Axes 120 Jobs: Following the Centre’s ban on RMG last month, the gaming giant laid off nearly 120 employees. With this, the company has joined the likes of its peers like Games24x7, MPL, Zupee and Pokerbaazi, which have laid off hundreds in recent weeks. 

Infra.Market Eyes $83 Mn: The B2B ecommerce platform plans to raise its Series G round from Silverline Homes, NK Squared, Tiger Global, and others at a valuation of $2.8 Bn. Meanwhile, Infra.Market is also looking to file its DRHP next month for a $700 Mn IPO.

OYO Through The IPO PRISM: The hospitality giant is making its third attempt at an IPO, and targeting a valuation of $7-$8 Bn. Investor sentiment seems cautiously optimistic, but its hefty listing valuation has raised eyebrows among critics. 

BharatPe’s Secondary Deal: In its first secondary share sale in four years, Gujarat-based family offices have acquired a 2.6% stake in the fintech unicorn through wealth tech platform Wylth. The deal was valued at an estimated INR 179 Cr. 

Pine Labs To Trim IPO Size: The fintech major is looking to trim the size of its public issue by 30% to $700 Mn as some existing investors mull pulling back from the OFS component. Pine Labs aims to go public by the second half of October. 

India’s LLM Push: The Centre has selected eight new entities, including Tech Mahindra and Fractal, to develop indigenous AI models under the IndiaAI Mission. IT Minister Ashwini Vaishnaw also expects India to have a working LLM by February 2026.

PayU Doubles Down On Mindgate: The fintech major has acquired an additional 27% stake in the payment infrastructure provider. With this, PayU now owns 70% in the company, up from 43% previously. The deal valued Mindgate at a nifty $300 Mn.

Inc42 Startup Spotlight

Snabbit’s 10-Minute Solution For India’s Maid Problem

India’s domestic help sector is marred by multiple challenges – unorganised structures, a trust deficit and inconsistent service quality. Founded in 2024, Snabbit is tackling this problem by “Uberising” the household help ecosystem.

The 10-Minute Solution: Snabbit’s platform connects households with verified “experts” for essential services, including laundry, dishwashing, cleaning, and kitchen preparation, within 10 minutes. Operating across Mumbai, Bengaluru, Gurugram and Thane, the platform claims to have onboarded 2,500 domestic workers and over 1 Lakh customers.

Trust Through Tech: Snabbit’s differentiation strategy centres on addressing the sector’s fundamental trust issues. The platform implements rigorous KYC verification and provides comprehensive training covering technical, soft, and digital skills to its domestic workers. 

On the customer side, the startup’s hourly pricing model (INR 150-200) ensures domestic workers earn premiums above traditional offline rates while customers pay moderately higher fees for guaranteed speed and reliability. 

With giants like Urban Company on its tail, can Snabbit’s speed-focussed playbook differentiate it in a historically unreliable market?