Groww IPO: India's Biggest Trading App to Go Public

Groww Prepares for IPO, Targeting $6-$8 Billion Valuation

Groww, currently the leading retail stockbroker in India, is reportedly preparing to submit its application for an Initial Public Offering (IPO) within the next 10 to 12 months. Sources with knowledge of the situation have indicated to TechCrunch that the company is aiming for a valuation ranging from $6 billion to $8 billion.

First Digital Trading Platform IPO in India

This planned listing represents a significant milestone, as it would mark the first IPO of a digital trading platform within India. The anticipated valuation exceeds the $3 billion valuation achieved during its last funding round in October 2021, effectively doubling the company’s worth.

Groww, backed by investors including Peak XV, Tiger Global, and Alkeon, has initiated discussions with investment banks. The selection of advisors to guide the IPO process is expected to occur shortly.

Strategic Preparations for Public Offering

The startup, which facilitates investments in mutual funds and UPI transactions in addition to stock trading, completed a shift of its corporate domicile to India from the U.S. last year. This move was undertaken specifically in preparation for the IPO.

A formal statement from Groww regarding this matter was not provided.

Market Leadership and User Growth

Groww has established itself as a frontrunner in India’s competitive retail investing landscape. Data from the National Stock Exchange reveals that the platform had 13.2 million active users in December.

This figure surpasses that of its closest competitor, Zerodha, which reported 8.1 million users. The exchange data also indicates that Groww is experiencing substantial user acquisition, adding between 325,000 and 550,000 new users each month – a rate more than double that of its rivals.

India as a Hub for Tech IPOs

India is increasingly becoming a prominent location for technology companies to go public. Seven technology startups launched IPOs in 2024, demonstrating a growing investor appetite.

The $1.35 billion IPO of food delivery service Swiggy was the largest tech listing globally in the previous year.

Future IPO Pipeline

More than 20 Indian startups are currently planning IPOs for 2025. These include Zetwerk (a business-to-business marketplace), Table Space (a managed workspace provider), PayU (owned by Prosus), and PharmEasy (a pharmaceutical platform).

Factors Driving IPO Growth

According to Abhinav Bharti, JPMorgan’s head of equity capital markets for India, the country’s expanding domestic capital base and consistent policy environment are key drivers behind the surge in IPO activity. This was shared in a recent interview with TechCrunch.

Market Capitalization and Trading Volume

The total market capitalization of companies listed in India has doubled, increasing from $5.3 trillion in 2019 to $10.6 trillion in 2024. Simultaneously, daily trading volume has tripled, reaching $15 billion.

Bharti emphasized to TechCrunch that “No other country globally provides this level of political stability and policy consistency.” He further stated that while specific policy decisions may be debated, their overall consistency is undeniable.