Groww Files Confidential IPO Papers With SEBI: A Big Leap for the Fintech Giant

In a significant move that signals its intent to go public, wealthtech unicorn Groww has confidentially filed for an IPO with SEBI (Securities and Exchange Board of India). This filing was done under the regulator’s pre-filing mechanism, which allows companies to submit draft papers without making them immediately available to the public.

This is the first official step by Groww towards its much-anticipated stock market debut, and marks a milestone for the Bengaluru-based fintech startup.

IPO Filing Under SEBI’s Chapter IA

According to a public notice released on May 26, Groww’s parent company, Billionbrains Garage Ventures Ltd., has filed the Draft Red Herring Prospectus (DRHP) under Chapter IA of SEBI’s ICDR Regulations. This allows the startup to seek feedback from SEBI before making its IPO documents public.

This filing confirms what was earlier reported – that Groww was planning a confidential IPO filing while simultaneously raising $150 million from GIC, the Singapore-based investment firm, as part of a larger $250–300 million pre-IPO funding round.

Valuation and Expected IPO Size

Sources suggest that Groww is aiming for a conservative IPO valuation in the range of $7-8 billion, taking into account current market conditions. Based on this valuation, the IPO could involve a 10–15% equity dilution, which may translate into an IPO size of $700–920 million.

If executed as expected, this would make Groww IPO one of the most closely watched public listings in India’s fintech sector this year.

📌 “Among new-age companies, Groww could command one of the lowest price-to-earnings multiples at the time of listing,” said a consultant familiar with the company’s plans.

The company intends to list its shares on the NSE and BSE mainboards, but the exact structure—including total issue size, fresh issue, and offer-for-sale (OFS) breakdown—is yet to be disclosed.

Solid Business Performance Ahead of IPO

Groww, which offers services such as online discount broking, mutual fund investing, and financial education, is currently competing with major players like Zerodha and Upstox.

The company has shown robust growth in FY24, doubling its consolidated revenue to ₹3,145 crore. Operational profit also rose 17% YoY to ₹535 crore, despite a one-time domicile tax of ₹1,340 crore that led to a net loss of ₹805 crore for the year. Notably, Groww shifted its registered office from Delaware (US) to Bengaluru last year, signaling a stronger India focus.

Market Conditions Could Be a Challenge

While Groww’s fundamentals look strong, its IPO journey comes at a challenging time for the broking industry. Several new regulations have put pressure on brokerage firms, including higher taxes, tighter norms for retail futures & options trading, and reduced exchange rebates.

In April 2025, Groww saw a decline of 75,000 active investors, while its rival Zerodha lost over 55,000 users, marking a third consecutive month of declines for major brokers.

Publicly listed broking firm Angel One recently reported a 49% drop in net profit for Q4 FY25, with revenue falling by 22%, underscoring the tough conditions in the sector.

🚀 What’s Next?

Once SEBI reviews and approves the confidential DRHP, Groww will submit an updated, public version, which will include the latest financial disclosures, possibly covering the performance up to Q1 of FY25.

The Groww IPO is not just a financial event—it’s a key moment for India’s fintech sector, showcasing the maturing of digital-first investment platforms that have gained massive traction among young Indian investors.

Stay tuned as this story unfolds. The Indian startup ecosystem will be closely watching how Groww’s IPO progresses in a volatile yet opportunity-rich market.