Groww Secures SEBI Nod for IPO: Plans to Raise Up to $1 Billion

The stock-broking and investment platform provider, Groww has received the approval from the market regulator, the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) in the range of $800 million to $1 billion, as per news reports

Earlier, Groww submitted a confidential draft red herring prospectus (DRHP) with SEBI on May 26, taking the less conventional private filing route for its public listing plans.

Groww has yet to issue a public statement regarding SEBI’s approval. The IPO will be managed by JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd, who have been appointed as lead bankers by Groww’s parent firm, Billionbrains Garage Ventures Pvt. Ltd.

Groww IPO Comes Amid Sector-Wide Pressure

Groww’s IPO is coming at a time when India’s top discount brokerages, including Zerodha, Angel One, and Upstox are struggling with a notable decline in active investors. Collectively, these platforms shed nearly 2 million users in1HFY25.

June 2025 alone saw a net outflow of 600,000 clients across these brokers, driven by regulatory tightening and declining retail participation in the derivatives segment. New SEBI measures, such as reduced contract durations, stricter margin norms, higher taxes, and tighter entry barriers, have significantly discouraged casual traders from engaging in futures and options trading.

Groww itself lost around 600,000 active users since January, followed closely by Zerodha, which saw 550,000 users exit its platform. Angel One and Upstox weren’t spared either, with losses of 450,000 or over 300,000 users, respectively.

Strong Financial Growth Despite Headwinds

Despite the user attrition, Groww has posted solid financials. In FY25, the company reported a 31% increase in revenue, reaching ₹4,056 crore, while net profit tripled to ₹1,819 crore. For comparison, in FY24, it earned ₹3,145 crore in revenue and an operating profit of ₹545 crore.

However, FY24 also included a one-time tax outgo of ₹1,340 crore tied to its restructuring, which resulted in a net loss of ₹805 crore for that fiscal year. The company has not yet filed its audited FY25 financials with the Registrar of Companies.

Also Read: IPO Bound Tata Capital Q1 FY26 Profit Surges 120% to ₹1,041 Crore

Groww has raised approximately $600 million from prominent global investors, including Peak XV Partners, Tiger Global, Ribbit Capital, and YC Continuity. The company was last valued at $3 billion following its $251 million Series E round in October 2021.

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