Online stock broking platform Groww has confidentially submitted its draft IPO papers to the Securities and Exchange Board of India (SEBI), with the public issue expected to raise between $700 million and $1 billion, reported PTI, citing individuals familiar with the matter.
The offering will consist of both a fresh issue of equity shares and an offer for sale (OFS), indicating a dual objective of capital infusion and investor exit.
The firm is looking to deploy IPO proceeds toward expanding its technology infrastructure and accelerating its business footprint, the news agency reported.
The Bengaluru-headquartered company, which is backed by notable names including Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, has mandated JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd to handle the IPO process.
Retail Growth Leader with Strong Financial Metrics
Founded in 2016, Groww has rapidly emerged as a dominant force in the Indian retail broking space. By March 2025, the platform claimed a market share of 26.26 per cent, up from 23.28 per cent a year earlier, according to the National Stock Exchange. In FY25 alone, it added 34 lakh new accounts, expanding its active user base from 95 lakh in March 2024 to 1.29 crore by March 2025 — a 36 per cent annual rise.
The firm’s appeal among retail investors has been credited to its mobile-first interface and emphasis on simplifying investment education. The platform has also played a key role in digitalising retail investing in the country, as its user-centric design helped demystify market access for first-time investors.
Financially, Groww turned profitable in FY23, posting Rs 449 crore in profit alongside Rs 1,277 crore in revenue. FY24 saw further gains in operating profit, reaching Rs 535 crore, while revenue soared to Rs 3,145 crore. However, a one-off tax expense of Rs 1,340 crore related to its India domicile shift pushed the company into a net loss of Rs 805 crore for FY24.
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Surge in Confidential IPO Filings Among Indian Firms
Groww’s decision to pursue a confidential pre-filing route follows a rising trend among Indian startups and private companies. This method allows issuers to avoid disclosing draft IPO details until closer to launch, offering strategic flexibility. Earlier this month, commerce platform Shiprocket also filed IPO papers using the same route. Others such as Tata Capital, PhysicsWallah, Imagine Marketing (boAt), and Swiggy have chosen similar paths in the past year.
Singapore’s sovereign wealth fund GIC recently sought approval from the Competition Commission of India (CCI) to acquire a 2.14 per cent stake in Billionbrains Garage Ventures, Groww’s parent firm, signalling continued investor interest.
The confidential filing option, first used in India by Tata Play in December 2022, allows more time and adaptability. Unlike the standard route that mandates IPOs to be launched within 12 months of Sebi’s approval, this alternative extends the timeline to 18 months post final comments. Moreover, companies can adjust the fresh issue size by up to 50 per cent during updates to the draft prospectus — another factor making the option attractive to high-growth companies with evolving capital needs.
