Fintech unicorn Groww is getting ready to go public by raising its valuation to between $6 billion and $8 billion in its initial public offering. This places Groww at the forefront as the first modern-day stockbroking startup going public after a string of fintech IPOs in India. The company, led by Lalit Keshre, has reportedly started having discussions with investment bankers as it looks to go public within the next 10 to 12 months.
PC: The Economic Times
Groww has emerged as one of the leading stockbroking platforms in India, with more than 13 million monthly active users. The latest data from the National Stock Exchange (NSE) reveals that Groww has a 26.59% market share in the stockbroking business. Its closest competitors, Zerodha and AngelOne, have market shares of 16.41% and 15.67%, respectively.
The fintech sector is no stranger to IPOs, as Paytm was the first major fintech company to list on the stock exchange in 2021, followed by Mobikwik in December of the previous year. But Groww’s IPO is the first for the stockbroking segment, marking a significant milestone in the growth of interest in digital financial services.
Groww has received nearly $400 million in funding from top-tier investors, namely Peak XV, Tiger Global, Ribbit Capital, and YC Continuity thus far. Valued at a little over $3 billion after an October 2021 $251 million Series E fundraise, it hasn’t drawn any new financing since then, which also suggests a deliberate move toward preparation for its planned IPO.
In the fiscal year 2024, Groww recorded a huge increase in revenues from operations: at Rs 3,145 crore. The firm did face great issues, posting a net loss of Rs 805 crore. This net loss was essentially on account of one-time tax payable of Rs 1,340 crore due to the transition back from the United States to India; it completed that in May 2024.
Domicile transition back to India is an important factor in Groww’s growth strategy. The shift was to consolidate its operations and align better with the regulatory framework in India. This was first reported by Entrackr in September 2023 and has since been viewed positively by stakeholders.
As the company gears up for its IPO, it aims to leverage its substantial user base and market leadership to attract potential investors. The fintech landscape in India is rapidly evolving, and Groww’s established presence positions it well to capitalize on ongoing trends in digital finance and investment.
Groww’s plans for an IPO at a valuation of $6 billion to $8 billion underline its growth trajectory and leadership in the Indian stockbroking market. With solid user base, high revenue growth, and strategic advancement, the company is poised to make a major impact in public markets. As it steers through going public, everyone will be holding their breath while watching Groww’s journey into the burgeoning space of fintech and its probable value delivery there. The immediate future will play a crucial role for Groww as it establishes its position there and proves it to investors by showing long-term stability.
