The IPO, which will comprise a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of 55.72 crore shares by early backers Peak XV Partners, Ribbit Capital, Y Combinator, Tiger Global, and Kauffman Fellows Fund, is coming at a time when stock brokers are facing regulatory uncertainty related to futures and options, one of the high margin revenue segments for them.
Groww’s parent, Billionbrains Garage Ventures, is reportedly targeting a valuation of up to $8 billion (about Rs 70,400 crore) through the IPO. The issue will be managed by Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors.
The listing will follow a blockbuster October month that has already seen big-ticket offerings like Tata Capital (Rs 15,500 crore) and LG Electronics India (Rs 11,600 crore, with Lenskart’s Rs 2,150-crore IPO set to open on October 31.
Interestingly, Groww’s unlisted shares have seen sharp volatility ahead of the issue, falling as much as 17% in the past month, reflecting cautiousness around valuation.
The fundamentals seem healthy. The Bengaluru-based fintech, which counts Microsoft CEO Satya Nadella among its investors, has grown rapidly from a stockbroking platform into a full-fledged financial services marketplace spanning wealth management, commodities, margin trading facilities (MTF), and loans against shares.Groww reported a net profit of Rs 1,824 crore in FY25, a sharp turnaround from a loss of Rs 805 crore in FY24, while revenues surged 49% year-on-year to Rs 3,902 crore. In Q1 FY26, the company posted revenue of Rs 904 crore and profit of Rs 378 crore, underscoring its strong momentum.As of June 2025, Groww had 12.6 million active clients on the NSE, translating into a 26.3% market share among retail investors — a level that puts it neck-and-neck with legacy players like Zerodha and Angel One.
While Zerodha continues to be the industry benchmark with Rs 8,370 crore in FY24 revenue and Rs 4,700 crore profit, Groww’s growth rate and new product expansion have made it the fastest-scaling fintech brokerage in India.
The IPO comes at a time when the broking industry is grappling with a regulatory clampdown on futures and options (F&O) trading, which has hit retail volumes. However, Groww’s diversified business model — combining investment, credit, and wealth services — could help cushion those headwinds.
If successful, Groww’s listing could become a defining moment for India’s new-age fintech sector, following in the footsteps of Paytm and Zomato — but with a stronger path to profitability.
