Groww files updated draft papers for Rs 7,000 cr IPO

BENGALURU: Billionbrains Garage Ventures, the parent company of the investment platform Groww, filed its updated draft red herring prospectus (UDRHP) with SEBI for an initial public offering worth Rs 7,000 crore. The offer includes a fresh issuance of shares worth up to Rs 1,060 crore and an offer for sale (OFS) of up to 574.2 million shares by existing investors and promoters. Promoters Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal will each sell up to 1 million shares. Major investors reducing stakes include Peak XV Partners, YC Holdings II, Ribbit Capital, GW-E Ribbit Opportunity, and Internet Fund VI. The OFS component is expected in the range of Rs 5,000-6,000 crore, sources told TOI.

The company may also pursue a pre-IPO placement of up to Rs 212 crore, which, if executed, will reduce the size of the fresh issue. The equity shares, with a face value of Rs 2, are proposed to list on the BSE and NSE. Groww’s revenue from operations grew by 128.6% from Rs 1,141 crore in FY23 to Rs 2,609 crore in FY24, and further increased by 49.6% to Rs 3,901 crore in FY25. In the June quarter of FY26, revenue stood at Rs 904 crore, down 9.7% from Rs 1,001 crore in the same quarter last year. The company turned around from a loss of Rs 805.5 crore in FY24 to a profit of Rs 1,824 crore in FY25. Net profit in the June quarter of the current fiscal rose 11.8% to Rs 378 crore, compared with Rs 338 crore in the year-ago period. Broking contributed 90% of revenue in the 2023-24 financial year but fell to 84.5% in the 2024-25 financial year, as income from margin trading, funding, and other products rose. Interest income from margin funding grew from 0.1% of revenue in Q1 FY25 to 3.1% in Q1 FY26. As of June, Groww had 12.6 million active NSE clients, holding a 26.3% market share. The platform accounted for 45.5% of net NSE active user additions and 25.8% of new demat accounts between June 2024 and June 2025. In mutual funds, Groww facilitated around Rs 34,000 crore of SIP inflows in FY25, or 11.8% of industry flows. The platform added two million new SIPs in June, roughly one-third of the national total that month. According to industry sources, Groww is expanding beyond broking and mutual funds into wealth management, commodities, and margin trading. Its acquisition of Wisdom, which offers on-ground advisory operations, aims to support products like PMS, AIFs, and private equity. “The focus is dual: broadening participation at the base while building depth with affluent users, who are growing faster and show higher engagement,” the source said.

Affluent investors, defined as those with assets over Rs 25 lakh, now account for one-third of customer assets, up from about a fifth two years ago. Roughly 80% of Groww’s new customers are acquired organically, with customer acquisition costs (CAC) accounting for just 12–13% of revenue and trending downward each quarter. Over the past few years, affluent customers—high-net-worth individuals (HNIs) investing beyond mutual funds and equities—have grown at twice the pace of aspirational customers. Many of Groww’s existing users also transitioned to this segment as their savings and investments increased. In May, Groww signed an agreement to acquire wealth-tech startup Fisdom in a deal valued at approximately $150 million. Fisdom has strong on-ground wealth expertise, 15–16 offices, and 150 semi-wealth partners. The firm is integrating Wisdom’s capabilities into its tech-driven platform to offer advisory-led wealth products such as PMS, AIFs, and private equity.