SEBI Clears Groww's IPO; Expected To Raise Up To $1 Bn

IPO-Bound Groww Completes Acquisition Of Fisdom After SEBI Nod

SUMMARY

Groww would be eyeing the raise of $800 Mn to $1 Bn from the IPO that will value the startup in the range of $7 Bn to $8 Bn

The startup last raised $200 Mn in its Series F funding round earlier in June at a valuation of $7 Bn

Groww's net profit tripled on a YoY basis to INR 1,818 Cr in FY25, while operating revenue surged 29% to INR 4,056 Cr

Investment tech unicorn Groww has received the go-ahead from public markets regulator SEBI to float its initial public offering (IPO), two sources close to the development confirmed to Inc42.

The approval comes about three months after Groww filed its IPO papers with the SEBI through the confidential route.

As per sources, Groww is looking to raise $800 Mn to $1 Bn via its listing at a likely valuation in the range of $7 Bn to $8 Bn. At the lower end of the spectrum, this is more or less the same $7 Bn valuation at which the investment tech major was last pegged at in June this year during its $200 Mn Series F round.

Moneycontrol was the first to report the development. Groww declined to comment when Inc42 reached out with questions about the SEBI approval.

If the IPO fructifies, this will be one of the largest public issues by a new-age fintech startup, after Paytm’s mega $2.44 Bn listing in 2021.

On the financial front, Groww’s net profit grew three fold year-on-year (YoY) to INR 1,818 Cr in FY25 while operating revenue stood at INR 4,056 Cr, a near 29% jump from INR 3,145 Cr reported in FY24.

In terms of operational metrics, the company currently holds 26% market share of the Indian investment tech space and reportedly boasts over 1.23 Cr users. However, it has been working on diversifying beyond simply offering “investing for first-time investors” in the run up to its IPO.

Most recently, the startup launched a platform for professional traders ‘915’and wealth management vertical offering PMS and AIF services for HNIs called W. Besides, the startup also signed a definitive agreement to acquire wealthtech startup Fisdom in an all-cash deal earlier this year to expand its offerings in the wealth management space.

However, much isn’t known about the startup’s IPO bid at this point, given its confidential filing.

It is pertinent to note that Groww has become the second new-age tech company this year, after PhysicsWallah, to receive SEBI’s approval after filing draft IPO papers via the confidential pre-filing route.

Meanwhile, a slew of startups are making a beeline for the exchanges despite inclement market conditions and subdued listing of four out of five new-age tech companies this year so far. Nevertheless, names like Meesho, Shadowfax, Snapdeal, Captain Fresh, among others have filed their DRHPs and are waiting for the SEBI nod.