Groww, an India-based wealth tech platform that began with the vision of making investments easy, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), as per the company in a public notice. As per the reports, the company aims to raise around USD 700 million—USD 1 billion. The company has completed a full circle, from making investments easy for users to become one of the assets itself, to launching its IPO.

Beyond all rumors and reports, this marks the company's first official step toward launching its IPO or listing itself. Billionbrains Garage Ventures Limited, Groww’s parent company, announces that it has filed the papers under Chapter IA of the SEBI ICDR Regulations. This provision enables the company to seek SEBI’s feedback without making its IPO documents immediately available to the public, famously called the confidential route. 

When will Groww’s IPO launch? 

After successful filling of the DRHP documents, it takes around 2-3 months for SEBI to evaluate these for approval, post which the company will file again with an updated DRHP. The final DRHP filed for IPO will be publicly accessible, containing all the details on the company's financial performance up to the latest quarter. 

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This whole process would consume significant time. Even then, a specific timeframe can't be committed, as many companies drop their plans after the evaluation, as in the case of Tata Play previously in 2022. 

What would be the size of Groww’s IPO?

According to Moneycontrol sources, Groww is likely to adopt a conservative IPO valuation of USD 7–8 billion, factoring in current market sentiment and volatility. At this valuation, a typical equity dilution of 10–15 percent would translate to an IPO size in the range of USD 800–920 million, positioning it as one of the most closely watched public listings in India’s fintech sector this year.

Groww intends to list its equity shares (face value ₹2 each) on the mainboards of both the NSE and BSE. However, details such as the total issue size, the fresh issue component, and the offer-for-sale breakdown have yet to be disclosed.

How has Groww’s financial performance been? 

Groww reported a 17 percent year-on-year increase in consolidated operating profit, rising to ₹535 crore for the financial year ended March 2024, up from ₹458 crore in the previous year. Consolidated revenue for FY23 stood at ₹1,435 crore. However, a one-time domicile tax expense of ₹1,340 crore led to a consolidated net loss of ₹805 crore.

This tax was incurred following the company’s shift in registered domicile from Delaware, U.S., to Bengaluru during the fiscal year.

Groww: Significant for the Indian Startup Ecosystem 

Since its seed round in 2018, backed by the founders of CureFit and Y Combinator, Groww has consistently attracted top-tier investors through successive funding rounds.

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The company raised USD 6.2 million in its Series A in 2019, followed by USD 21.4 million in Series B, USD 30 million in Series C, USD 83 million in Series D, and a milestone of USD 251 million in Series E in October 2021. The Series E round valued Groww at USD 3 billion, cementing its status as one of India’s most promising fintech players.