• Groww Files for $1 Billion IPO
• 10% Equity Stake Offered
• Largest Broker by Active Clients

Indian brokerage giant Groww has made the initial step towards floating as a public company by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) that could raise as much as $1 billion.

The Bengaluru-headquartered firm, backed by investors like Tiger Global and Singapore's GIC, has filed its Draft Red Herring Prospectus under SEBI's pre-filing mechanism wherein companies can invite regulatory comments without instant public glare.

The IPO will both include a new issue of shares and an offer for sale, and will list on the BSE and NSE. The company will probably issue about 10% of its equity, putting the company's value at about $7 billion post-money.

Groww's going public is part of a larger trend of Indian startups taking the confidential filing path, something which has been allowed since 2022 under SEBI's Regulation 59C(5). The firm's market presence has been expanding very quickly, with it becoming the nation's largest broker in terms of active clients.

Groww held 26.26% of the active investor base of the National Stock Exchange as of March 2025 from 23.28% a year ago. It added 3.4 million active accounts in FY25 and took its user base to 12.9 million.

Financially, Groww registered revenues of Rs 3,145 crore in FY24, over two times its last year's Rs 1,277 crore. Operating profit was Rs 535 crore, higher than Rs 458 crore in FY23. The company, however, registered a net loss of Rs 805 crore for March 2024 ended year as it incurred a one-time tax charge of Rs 1,340 crore due to the change in its domicile from the U.S. to India.

The IPO will be handled by a group of investment banks that include JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets, Axis Capital, and Motilal Oswal Securities.

Though Groww's plans to enter the public market reflect long-term optimism, the timing follows a decline in investor sentiment and growing regulation facing India's broking industry. Active user bases among India's top four brokers, including Groww and Zerodha, fell for a third month running in April. Even Groww experienced a decline of close to 75,000 active investors in April.