Groww Founders Secure ₹614 Crore Performance Incentives Ahead of IPO

Key Highlights

• Groww founders received ₹614 crore in one-time performance incentives in FY25.

• CEO Lalit Keshre earned the highest at ₹188.64 crore, including ₹185.66 crore incentives.

• Incentives surpassed Groww’s Q1 FY26 net profit of ₹378.36 crore.

• FY25 full-year profit stood at ₹1,824.37 crore, reversing a loss of ₹804.94 crore in FY24.

• Chairman Gaurang Shah paid ₹33 lakh, including fees and reimbursements.

• No incentives were expensed in FY25, unlike FY24 when payouts drove higher costs.

• IPO to include ₹1,060 crore fresh issue and Offer for Sale, with possible ₹212 crore pre-IPO placement.

• Groww holds a 26% share of new demat accounts and 45% share of net new NSE active users in FY25.

Substantial Incentives Ahead of IPO

Online investment platform Groww awarded large one-time performance incentives to its four co-founders in FY25, significantly increasing their overall remuneration as the company moved toward its planned initial public offering. The payouts, which totaled ₹614 crore, were expensed in FY24 but disbursed in FY25, and will not affect normalized costs for the current financial year.

The extraordinary incentives placed the founders’ remuneration well above the firm’s quarterly net profit in the first quarter of FY26, highlighting the scale of the payouts.

CEO Lalit Keshre Receives Highest Pay

Among the founders, CEO Lalit Keshre received the largest remuneration package. His total compensation for FY25 was ₹188.64 crore, of which ₹185.66 crore came in the form of one-time performance incentives.

Keshre’s payout positioned him as the top-paid executive at Groww in FY25, reflecting the substantial weight of incentives in the company’s remuneration structure.

COO, CFO, and CTO Earnings

The other three co-founders also received significant compensation linked primarily to one-time incentives. COO Harsh Jain earned ₹149.58 crore, including ₹146.65 crore in incentives. CFO Ishan Bansal drew ₹136.96 crore, with ₹133.97 crore tied to incentives. CTO Neeraj Singh earned ₹151.32 crore, of which ₹148.3 crore was linked to incentives.

Collectively, the four co-founders earned ₹614 crore, an amount that exceeded the company’s net profit of ₹378.36 crore in the June 2025 quarter.

Incentives Compared to Profit Performance

The ₹614 crore payout to founders stood in contrast to Groww’s financial performance in recent quarters. While the June 2025 quarter delivered a net profit of ₹378.36 crore, this was overshadowed by the founders’ collective remuneration.

For the full fiscal year FY25, Groww reported a net profit of ₹1,824.37 crore, marking a significant turnaround from the net loss of ₹804.94 crore reported in FY24.

Chairman’s Compensation

Chairman and Independent Director Gaurang Shah’s compensation for FY25 was ₹33 lakh. His remuneration included ₹26 lakh as fixed pay and an additional ₹7 lakh in sitting fees and reimbursements.

While relatively modest compared to the founders’ payouts, Shah’s compensation reflected the governance structure of the company and its board-level remuneration practices.

FY24 Incentive Impact

The scale of Groww’s FY25 payouts is partly explained by the incentive structures put in place during FY24. In that year, the company booked ₹778.6 crore in one-time management incentives and an additional ₹106.17 crore accrued under its long-term incentive plan.

These payments significantly increased employee benefit expenses, contributing directly to the company’s reported annual loss of ₹804.94 crore in FY24.

Cost Normalization in FY25

Unlike FY24, no fresh incentives were expensed in FY25, allowing Groww’s operating costs to normalize. This reduction in one-time payouts contributed to the firm’s ability to report a sharp turnaround in profitability, with ₹1,824.37 crore earned during FY25.

However, the company’s Adjusted Cost to Operate increased in the June 2025 quarter, as Groww shifted its annual appraisal cycle from July to April. This change brought forward performance-based incentives for employees, impacting cost structures in the quarter.

Upcoming IPO Plans

Groww is preparing to launch its initial public offering, which will comprise a fresh issue of shares worth ₹1,060 crore and an Offer for Sale. Additionally, the company has left open the option of a pre-IPO placement worth up to ₹212 crore.

The IPO will mark a major milestone for the online investment platform, which has already established a strong presence in India’s retail investment landscape.

Market Share in Demat Additions and NSE Active Users

In its draft red herring prospectus (DRHP), Groww highlighted its leading position in India’s retail investor segment. The platform accounted for nearly 26 percent of new demat account additions and 45 percent of net new active users on the National Stock Exchange (NSE) during FY25.

These metrics underline Groww’s rapid expansion and dominant position in the market as it heads toward its IPO.

Undisclosed Rationale Behind Payouts

The company has not disclosed the rationale for awarding the ₹614 crore in one-time incentives to its founders. A mail sent to Groww regarding the reasoning behind these payouts remained unanswered.

Without a stated explanation, the payouts stand out as unusually large compared to the company’s profits in the most recent quarter, raising questions about compensation structures at high-growth financial technology firms.

Conclusion

Groww’s decision to award ₹614 crore in one-time performance incentives to its four co-founders has drawn attention as the company prepares for its IPO. The payouts, which elevated CEO Lalit Keshre’s compensation to ₹188.64 crore and gave each co-founder more than ₹130 crore, exceeded the firm’s June 2025 quarterly profit of ₹378.36 crore.

Despite these substantial payments, Groww delivered a strong financial performance in FY25, posting a profit of ₹1,824.37 crore after reporting a loss of ₹804.94 crore in FY24. The absence of fresh incentives in FY25 helped normalize costs, although the company’s Adjusted Cost to Operate rose in the June quarter due to changes in its appraisal cycle.

With an IPO in the pipeline, including a ₹1,060 crore fresh issue and an Offer for Sale, Groww is positioning itself as a major player in India’s retail investing ecosystem. Its 26 percent share of new demat account openings and 45 percent share of net new NSE active users underline its leadership position.

As the company moves closer to its IPO, the scale of the one-time incentives awarded to its founders remains a notable aspect of its corporate and financial story, especially given the lack of clarity on the rationale behind the payouts.

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