Groww Files for Rs. 6,000–7,000 Crore Issue

Groww, India’s largest wealth-tech platform by active investors, has filed papers with SEBI for an initial public offering (IPO of Rs. 6,000–7,000 crore), targeting a November 2025 listing. This could be one of the most profitable startup listings in India’s capital market history.

The IPO will comprise a fresh issue of Rs. 1,060 crore and an Offer for Sale (OFS) of Rs. 5,000–6,000 crore by existing investors. Founders plan to offload only 0.07% stake, and their 20% holding will remain under lock-in for 18 months post-listing. Early investors Peak XV, Y Combinator, Ribbit Capital, and Tiger Global are likely to participate in the OFS. Price band finalisation is expected by mid-October.

Company Background

Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal (ex-Flipkart employees), Groww has built a strong investor base of nearly 18 million active clients, with 12 million active on NSE as per official data. As of June 2025, the platform had a 26% share of NSE’s active clients and contributed 45% of net user additions YoY. In mutual funds, Groww is equally dominant — in June 2025 alone, 2 million out of 6 million new SIPs were started on Groww, giving it an 18.5% market share in active SIPs and 16% share in unique MF investors.

Financial Performance

Q1FY26: Net profit Rs. 378 crore (+11% YoY), revenue Rs. 904 crore (–10% YoY).
FY25: Net profit Rs. 1,819 crore (3x YoY), revenue Rs. 4,056 crore (+31% YoY).
Profitability: Net profit margin ~45%, contribution margin ~85%, among the highest in the industry.

Despite SEBI’s restrictions on F&O and higher trading taxes impacting peers like Zerodha and Angel One (20–30% drop in revenue/profitability), Groww’s diversified wealth offerings and robust customer additions have cushioned the business.

Growth Strategy & Expansions

Acquisitions: Recently acquired Fisdom to expand its wealth-tech portfolio.
New Products: Launched commodities for select clients; plans to scale Margin Trading Facility (MTF) lending.
AMC Business: Already active in mutual funds through its asset management subsidiary.

Chanakya View

Groww is entering the IPO market with strong fundamentals, impressive customer growth, and industry-leading margins. However, valuations will be closely watched, given headwinds in the broking sector from regulatory tightening on F&O trading, lower exchange rebates, and higher trading taxes.

If the price band remains in a fair zone, this IPO could be one of the most sought-after listings of 2025.

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