Tiger Global-Backed Groww Picks Bankers For Its IPO: Report

Investment tech platform Groww’s parent Billionsbrains Garage Pvt Limited has reportedly picked banks for a potential India initial public offering (IPO).

As per Bloomberg’s report, citing people close to the matter, the company has picked banks, including JPMorgan Chase & Co. and Kotak Mahindra Bank.

The company behind financial services platform Groww Invest Tech Pvt. Ltd. could proceed with an IPO this year, the people said, seizing on the momentum for share sales in India. The IPO could raise $750 Mn or more and Billionbrains Garage may seek a valuation of $7-$8 Bn, the people said.

The report further said that considerations are preliminary and details such as size and timing could change. More banks may also be added to help arrange the deal.

In May last year, the company completed its reverse flip, shifting its domicile to India from the US.

Back then the startup’s CEO and cofounder Lalit Keshre took to X to make the announcement.

“As of March 2024, Groww has completed its domicile transition back to India…,” Keshre had said.

The fintech unicorn completed its reverse flip last year in May shifting its domicile from the US to India. The company merged its US entity the Groww Inc. with its Indian entity Billionbrains Garage headquartered in Bangaluru.

Founded in 2017 by Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww is a wealthtech platform which allows its users to  invest in stocks, exchange-traded funds (ETFs), and IPOs. It competes with the likes of Zerodha, ET Money and StockGro.

It counts Tiger Global, Peak XV, Propel Venture Partners, ICONIQ Growth and Y Combinator among its marquee backers.

Last week it was reported that the Bengaluru-based startup is seeking a valuation of $6-$8 Bn as it is gearing up to file for an IPO in the next 11 to 12 months.

Back in 2021, Groww was last valued at $3 Bn following its last funding of $251 Mn in from ICONIQ Growth, Alkeon, Lone Pine Capital, Steadfast and its existing investors.

But in November last year, it was revealed that the fintech player saw its fair market valuation being plunged to under $2 Bn after shifting its domicile from the US to India.

Groww has been a prominent player in the investment tech sector leading the market in terms of having the highest number of active users.

According to NSE data,  Groww added 2.82 Lakh new users taking its active client base to 1.29 Cr in November last year.

While Zerodha took the second spot with its active user base standing at 81.25 Lakh.

Moreover,  Angel One stood at number three in the race with an active user base of 76.31 Lakh followed by Upstox, Dhan, INDMoney and Paytm Money with 28.72 Lakh, 8.92 Lakh, 7.32 Lakh and 7.15 Lakh active users respectively.

Groww, has reported 119% growth in its revenue, up from INR 1,435 Cr in the financial year 2022-23 (FY23) to INR 3,145 Cr in FY24. It maintained its operational profitability of INR 535 Cr for FY24 compared with INR 458 Cr in the previous fiscal year.