Groww’s stock broking platform has reportedly engaged with several investment banks to explore the possibility of an initial public offering (IPO), according to sources familiar with the matter.
The sources revealed that the IPO expects to value the fintech company between $6 billion and $8 billion. Additionally, Groww anticipates raising approximately $700 million through the public listing insiders shared.
To prepare for its India listing, the Bengaluru-based startup recently transitioned its parent entity from the US back to India. As part of this process, Groww paid ₹1,340 crore ($160 million) in taxes to the US government, calculated based on the new fair market value (FMV). The sources added that this FMV represented a significant reduction of over 30% from the $3 billion valuation achieved during its last funding round in 2021.
Initially launched as a direct mutual fund platform, Groww shifted its focus to stock trading and quickly became the largest broking app in India. The platform now boasts over 12 million active traders.
In the last financial year, Groww reported a total revenue of ₹3,145 crore, with an operating profit of ₹535 crore. However, it posted a net loss of ₹805 crore, primarily due to a one-time tax payment related to its transition back to India.
Beyond stock trading, Groww operates an asset management company and provides credit services through its non-banking financial arm. Through Groww Creditserv Technology, the company offers consumer credit and checkout financing, with assets under management reaching ₹731 crores by March 2024.
Groww is among several Indian startups preparing to go public this year.
