Growth-rivaling stock trading platform, Groww, to submit revised Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), aiming for a November debut on the stock exchange, according to reports.
Groww, an Indian online investment platform, is preparing to take a significant step forward in its journey. The company, founded by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal - all former executives of Flipkart - is gearing up to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) next week.
From Mutual Fund Investment to a Multi-Service Platform
Groww began as a mutual fund investment app, but over the years, it has expanded its services to include stockbroking, digital lending, payments, and wealth management. This growth has been reflected in its financial performance. In FY25, Groww's revenue rose 31% to Rs 4,056 crore, and the company reported a threefold increase in net profit to Rs 1,819 crore.
Funding and Valuation
Groww has raised a total of $596 million in equity funding. Notable investors include Y Combinator, Peak XV Partners, Tiger Global, and Ribbit Capital. In 2021, Tiger Global led an $83 million round, pushing Groww into the unicorn club.
The most recent funding round was a $200 million round, led by Singapore's sovereign wealth fund GIC and Iconiq Capital, valuing the company at $7 billion. Groww aims for a public listing by November, with an initial public offering (IPO) size of $700 million to $1 billion. The company seeks a valuation of $7 billion to $9 billion with this IPO.
Moving Domicile and Tax Implications
In a significant move, Groww's domicile has been reversed from the United States to India. This change has come with a cost, as the company has had to pay Rs 1,340 crore ($160 million) in taxes to the US government.
Preparing for the IPO
Groww received SEBI approval to proceed with the IPO in late August. The offering will consist of a mix of fresh issue and an offer for sale, allowing early investors to partially exit. The company filed its initial draft papers confidentially on May 26 through its registered entity, Billionbrains Garage Ventures Ltd.
As Groww prepares for its IPO, it marks a significant milestone for the Indian investment platform. With its wide range of services and strong financial performance, Groww is poised to make a lasting impact in the Indian financial sector.
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