Another Mega IPO in the Pipeline: Groww Gears Up for $1 Billion Market Debut

India’s stock markets are bracing for another big-ticket listing. Online stockbroking and wealth management platform Groww has received the green light from the Securities and Exchange Board of India (SEBI) for an initial public offering that could raise up to $1 billion, valuing the Bengaluru-based fintech at around $7–8 billion.

The development adds to the growing pipeline of startup IPOs in India, but Groww’s story is different. Unlike many new-age companies that went public with mounting losses, Groww enters the market with strong profitability and a dominant position in India’s retail investing landscape.

A Profitable Contender in the IPO Race

Founded in 2016 by four ex-Flipkart employees — Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal — Groww started with a simple mission: to make investing accessible and transparent for young Indians. What began as a direct mutual fund investment platform quickly evolved into a full-fledged stockbroking and wealthtech company, offering equities, futures & options, ETFs, IPOs, and SIPs.

That strategy has paid off. In FY25, Groww posted revenues of ₹4,056 crore and a net profit of ₹1,818 crore, a threefold jump in profits compared to the previous year. For a fintech, these numbers stand out in an environment where profitability is increasingly being demanded by both public and private market investors.

Groww IPO Details Taking Shape

Groww had filed for its IPO confidentially under SEBI’s pre-filing mechanism in May 2025. With regulatory approval now secured, the company is expected to make its updated Draft Red Herring Prospectus (DRHP) public in the coming weeks.

While finer details such as the fresh issue component and offer-for-sale portion are yet to be disclosed, market sources suggest that Groww is looking at a 10–15% equity dilution. This would translate to an IPO size in the range of $700–920 million, depending on market conditions. Shares are planned to be listed on both the NSE and BSE mainboards.

Market Leader Despite Headwinds

Groww’s rise reflects the broader boom in India’s retail investing culture. As of August 2025, the platform has over 12.3 million active clients and commands more than 26% share of NSE’s market activity. It is also the largest distributor of mutual fund SIPs, a product that has become the entry point for millions of first-time investors.

However, the journey hasn’t been without challenges. Both Groww and rival Zerodha together lost about 11 lakh active investors in the first half of 2025 as volatility weighed on retail participation. Yet, Groww’s scale and continued profitability suggest that the platform has managed to hold on to its leadership position even in turbulent times.

Groww Investors

The company has the backing of some of the most influential global investors, including Tiger Global, Peak XV Partners, Ribbit Capital, GIC, and Iconiq Capital. Earlier this year, Groww raised $200 million at a $7 billion valuation in a funding round led by GIC and Iconiq, effectively setting the stage for the IPO.

For early backers, the public listing will provide an opportunity to partially cash out, while Groww itself could use fresh proceeds to expand its product suite, strengthen technology, and potentially explore international markets.

Why Groww IPO Matters

Groww’s market debut will be closely watched for more than one reason. It is one of the few large startup IPOs in recent years where the company is not just growing fast but also solidly profitable. That alone gives it a stronger pitch to public market investors compared to several tech listings in the past.

At the same time, the IPO is expected to be a litmus test for India’s wealthtech industry, showing whether retail investor enthusiasm can translate into confidence on Dalal Street. If successful, Groww’s listing could pave the way for more fintechs to take the public route — but with a focus on sustainable growth and profits.

For now, all eyes are on Bengaluru’s wealthtech unicorn as it prepares for its next big step. From simplifying mutual funds for millennials to potentially ringing the opening bell on Dalal Street, Groww’s $1 billion IPO is more than just a fundraising event — it’s a reflection of how India’s investing culture itself has come of age.