Groww IPO: Broker eyes fresh issue of Rs 1,060 Cr, lines up large offer for sale

Investment platform Groww has filed an updated draft red herring prospectus (DRHP) with the market regulator, seeking to raise Rs 1,060 crore in fresh capital through an initial public offering (IPO) that will see major Silicon Valley investors cash out significant stakes.

The Bengaluru-based company, operated by Billionbrains Garage Ventures Limited, plans to combine the fresh issue with a substantial secondary sale of up to 574.2 million shares by existing shareholders, according to regulatory filings reviewed on Tuesday.

Peak XV Partners leads the selling shareholders with 158.3 million shares on offer, followed by Y Combinator's YC Holdings II, with 105.5 million shares. Ribbit Capital is selling 65.7 million shares directly, with its GW-E Ribbit Opportunity V entity offloading an additional 52.5 million shares.

Tiger Global's Internet Fund VI plans to sell up to 64.8 million shares, while Kauffman Fellows Fund is offering 27.5 million shares.

The company's four co-founders—Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh—are each selling up to 1 million shares, a fraction compared to the venture capital exits.

The company competes with established players like Zerodha and newer entrants such as Upstox in India's increasingly crowded retail brokerage space.

Groww will channel significant resources into infrastructure, marketing, and subsidiaries in the coming period. The company plans to allocate Rs 152.5 crore to expand its cloud infrastructure and Rs 225 crore for brand building and performance marketing. In addition, it will invest Rs 205 crore in Groww Creditserv Technology Private Limited (GCS) and Rs 167.5 crore in Groww Invest Tech Private Limited (GIT).

Also Read

IPO-bound Groww reports 3X jump in FY25 profit, raises $200M at $7B valuation

The Y Combinator-backed fintech has emerged as the clear market leader, with more than 12 million accounts and a commanding 26.8% share of the brokerage market as of August 31.

Its scale now puts it comfortably ahead of both Zerodha and Angel One, the long-established heavyweights of the industry. Zerodha holds the second spot with 7.26 million accounts and a 16.1% share, while Angel One is close behind at 7.05 million accounts and 15.6%.

The online brokerage’s consolidated revenue from operations slipped nearly 10% in the first quarter of FY25, but a drastic cut in employee costs helped fatten its bottom line. Net profit attributable to shareholders rose about 12% year-on-year to Rs 378.4 crore.