Source: Business Standard
Groww, the online investment platform, has confidentially filed papers with India’s Securities and Exchange Board of India (SEBI) to go public via an initial public offering (IPO). The IPO, according to sources familiar with the matter, is expected to raise between $700 million – $1 billion.
The filing was made as per Regulation 59C(5) of SEBI’s ICDR Regulations which permits companies to submit draft red herring prospectuses (DRHP) confidentially. This regulation is gaining popularity among tech startups as it enables them to receive feedback from SEBI in advance of publicly
The IPO will consist of equity shares of Rs 2 each, and would be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The filing was made under Groww’s official corporate name, Billionbrains Garage Ventures Ltd.
Notably, the company mentioned in its notification “The filing of the pre-filed DRHP shall not necessarily mean that the company will undertake the initial public offering,”
GIC will spearhead pre-IPO funding.
GIC, Singapore’s sovereign wealth fund, intends to invest in Groww prior to the IPO. GIC has applied to the Competition Commission of India (CCI) to purchase 2.14% of the business through Viggo Investments, a special vehicle. GIC most likely contributed $150 million to the bigger pre-IPO capital round, which is expected to be between $250 million and $300 million. Groww’s prior valuation of $3 billion during its Series E investment in 2021 may have been more than doubled by the new funding round, which may value the company at over $7 billion post-money. It is anticipated that renowned investor Tiger Global will also take part in this round.
Strong Growth Despite Some Setbacks
Groww’s operating revenue for the fiscal year 2023–2024 (FY24) was Rs 3,145 crore. The business reported a net loss of Rs 805 crore in spite of this remarkable increase. The primary cause of the loss was a one-time tax payment associated with the company’s decision to transfer its headquarters from the US to India in advance of the IPO.
About Groww
Groww, which was founded in 2016 by former Flipkart workers, provides investing alternatives such stocks, mutual funds, gold, ETFs, and initial public offerings (IPOs). Leading international investors such as Y Combinator, Ribbit Capital, Tiger Global, and Peak XV (previously Sequoia Capital India) support it. By the end of 2025 or the beginning of 2026, the IPO is probably going to happen.
