Groww Secures SEBI Approval for IPO, Looks to Raise up to $1 Billion

Online brokerage platform Groww has received the go-ahead from the Securities and Exchange Board of India (SEBI) to launch its much-awaited initial public offering. The Bengaluru-based fintech aims to raise between $800 million and $1 billion through the issue, according to people familiar with the matter.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The approval comes three months after Groww filed its draft red herring prospectus confidentially on May 26, taking the private filing route that has recently become more common among large startups. The company has not yet issued an official statement on SEBI’s clearance. JPMorgan Chase & Co. and Kotak Mahindra Bank have been appointed as lead managers for the offering, backed by Groww’s parent, Billionbrains Garage Ventures Pvt. Ltd.

Sector Facing Sharp Slowdown

The timing of the IPO is notable as India’s discount brokerage industry is under visible strain. Market leaders, including Zerodha, Angel One, Upstox and Groww itself, have reported heavy attrition in recent months.

Data suggests the four platforms together shed nearly 20 lakh active users in the first half of FY25. June alone accounted for a net outflow of 6 lakh clients. Analysts attribute this to tighter SEBI rules that have made derivatives trading less attractive. Measures such as shorter contract tenures, stricter margin requirements, higher tax obligations and higher entry barriers have discouraged casual traders.

Groww has seen around 6 lakh users leave since January 2025. Zerodha lost about 5.5 lakh, while Angel One and Upstox lost 4.5 lakh and 3 lakh, respectively.

Financials Remain Strong

Despite shrinking user numbers, Groww’s financial performance has been robust. The company reported revenues of ₹4,056 crore in FY25, a 31% jump over the previous year. Net profit came in at ₹1,819 crore, more than three times the previous fiscal.

The sharp turnaround is partly explained by the previous year’s one-off costs. In FY24, Groww had booked a net loss of ₹805 crore after a ₹1,340 crore tax outgo linked to internal restructuring. Operating profit in that year stood at ₹545 crore. The firm has not yet submitted audited FY25 accounts to the Registrar of Companies.

Backed by heavyweight investors such as Peak XV Partners, Tiger Global, Ribbit Capital and YC Continuity, Groww has so far raised roughly $600 million. Its last known valuation was $3 billion, recorded during a $251 million Series E round in October 2021.

Outlook

Groww’s IPO will be one of the largest public listings by an Indian fintech in recent years. While the industry faces slowing growth and tighter regulations, the company’s improving financials and strong investor backing could help it attract significant market attention.