Groww IPO: Indian Investing Platform Raises $750M

Groww's Successful IPO: A Landmark for Indian Fintech

The initial public offering (IPO) of Indian online brokerage Groww on Wednesday represented the largest listing within the Indian fintech sector this year. The company successfully secured ₹66.3 billion, equivalent to approximately $748 million, with its shares experiencing a 29% increase from the initial issue price.

Share Performance and Market Valuation

Trading commenced with shares opening at ₹112, a rise of roughly 12% above the ₹100 issue price. The closing price reached ₹128.85, establishing a market capitalization of ₹795 billion, which translates to about $9 billion.

A Resurgence in Indian Startup IPOs

Groww’s listing coincides with a noticeable increase in IPO activity among Indian startups. Lenskart, an eyewear retailer, recently debuted on the market earlier in the week. Furthermore, Pine Labs, a payments platform, is slated to list on Friday, having already achieved full subscription of its $440 million IPO as of Tuesday.

Additional venture-funded companies, including Physics Wallah and Capillary Technologies, are preparing for public offerings in the near future.

Company Background and Investors

Established in 2016 by former employees of Flipkart, Groww has capitalized on the growth of retail investing in India. Notable investors include Satya Nadella, CEO of Microsoft, Peak XV, Y Combinator, Ribbit Capital, ICONIQ, and Tiger Global.

The platform specifically targets novice investors entering the retail investing landscape, positioning itself as a competitor to established players like Zerodha and Angel One.

User Base and Business Diversification

As of June, Groww boasted over 14 million active users and more than 12.6 million active clients on the National Stock Exchange (NSE), as detailed in its IPO offer document.

While stockbroking remains its primary focus, the company has strategically expanded into other financial services, including lending – supported by a dedicated app launched last year – as well as payments, asset management, and insurance brokerage. However, these supplementary businesses currently contribute a smaller portion of revenue compared to its core brokerage operations.

Financial Performance

For the financial year concluding in March 2025, Groww reported revenue of ₹39 billion ($440 million) and a net profit of ₹18 billion ($206 million).

Investor Activity and IPO Demand

The IPO saw participation from several investors, including Peak XV Partners, Ribbit Capital, Tiger Global, and Sequoia Capital, who divested portions of their holdings. Demand for the IPO was substantial, with a subscription rate of nearly 18 times, driven largely by institutional investors. The company also secured approximately ₹30 billion from anchor investors in a pre-IPO placement last week.

Leadership Perspective

“We owe so much to so many people for building this,” stated Groww co-founder and CEO Lalit Keshre during the listing ceremony. He recalled the company’s humble beginnings, noting their initial goal of acquiring 100 customers within a month, which was surpassed with 600 customers.

Industry Reaction

Venture investors expressed enthusiasm regarding Groww’s successful public debut. Anu Hariharan, co-founder of Avra Capital, highlighted the potential for returns on Indian investments, stating that Groww is delivering significant returns and potentially one of the best Internal Rates of Return (IRRs) of the decade.

Milestones for Y Combinator and Indian Unicorns

This IPO represents a significant achievement for Y Combinator, as Groww is the first Indian company backed by the accelerator to go public. Additionally, Groww is the first Indian startup to list after relocating its corporate headquarters back to India from Delaware, reflecting a trend of Indian unicorns returning their base of operations home.

Future Plans

Groww intends to utilize the newly acquired capital to enhance its cloud and technology infrastructure, bolster marketing initiatives, and further invest in its lending and margin trading businesses. The company has also allocated funds for potential acquisitions.