Groww has changed how over 12 crore Indians invest in the stock market. Now, its upcoming IPO marks an important moment in fintech history. But new government rules bring fresh challenges to its business.
Groww, along with Zerodha and Angel One, made investing easy and affordable. They dropped brokerage fees and launched user-friendly apps. This opened stock and mutual fund investing to millions beyond big cities. Groww alone has 12 crore users. It brought investing to people who never had access before.
But the Indian fintech scene is hitting some obstacles. The market regulator SEBI is tightening rules for the futures and options (F&O) sector – a big source of income for discount brokers like Groww. The IPO that opens in early November 2025 is happening at a time when the business model is being tested.
Groww grew fast thanks mainly to heavy trading in derivatives like options and futures. But new SEBI rules may limit these trades, threatening a major revenue stream.
In fiscal 2025, Groww’s brokerage income dropped 18% from the previous year. Overall revenue fell 10%, and profits were down 25%. Most (62%) of its brokerage money comes from derivatives trading, so it faces big risks. Experts warn a small dip in derivatives activity could hurt revenue significantly.
| Metric | FY23 | FY24 | FY25 |
| Revenue (₹ crore) | 1,141.5 | 2,609.2 | 3,901.7 |
| Net Profit / (Loss) (₹ crore) | 457.7 | (805.5) | 1,824.3 |
| EBITDA (₹ crore) | 398.8 | (780.9) | 2,371 |
| Total Assets (₹ crore) | 4,807.7 | 8,017.9 | 10,077.3 |
To deal with these challenges, Groww is shifting from only brokerage to a wider financial services platform. Margin trading has grown eightfold, and lending interest now makes up 3% of revenue. It is also expanding into mutual funds, insurance, wealth management, and payments, though these new areas are still small or losing money.
Rivals Zerodha and Angel One are making similar moves. Zerodha aims at long-term investments and wealth management. Angel One is adding advisory and lending services to grow revenue.
Check here Related Video: Groww IPO
Groww wants a valuation of 34-44 times its 2025 earnings, hoping investors will value its tech, brand, and large user base. This is much higher than Angel One’s roughly 20 times earnings. Investors are excited but cautious, watching how well Groww handles new rules and keeps users active.
Important Numbers to Remember
Key financial and business metrics for Groww IPO in FY23 and FY25, highlighting revenue growth, profit recovery, active user base, and young investor demographic
Groww shows how India’s financial tech is growing fast, thanks to better financial knowledge and internet access. It is moving from pure brokerage to offering full financial services, fitting a wider trend.
But changing government policies poses a big challenge. Success depends on how well Groww meets rules and keeps innovating. For investors, its IPO is both a chance to join fintech’s growth story and a warning of risks ahead.
Groww’s IPO is a big moment for India’s fintech world. It has brought millions into investing but faces uncertain times. How well it adapts will shape its future. Investors must decide whether to join this journey or wait for clearer signs of steady profits.
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From November 4 to 7, 2025. Listing should happen by November 12.
Shares cost ₹95 to ₹100. The smallest lot is 150 shares.
Around ₹6,632 crore, including new shares and some being sold.
Mainly from derivatives brokerage, margin trading, mutual funds, wealth management, and loans.
Changing rules on derivatives, market ups and downs, tough competition, and reliance on trading volume.
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