In a landmark development that underscores the burgeoning confidence in India’s fintech sector, Bengaluru-based investment platform Groww has received the green light from the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO). The approval paves the way for Groww to raise up to $1 billion, with the company eyeing a valuation between $7 billion and $8 billion, according to sources familiar with the matter. This move positions Groww as a formidable rival to established players like Zerodha, signaling a new era of competition and innovation in the online brokerage space.
Founded in 2016 by four Flipkart alumni—Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal—Groww started as a simple mutual fund investment app but has since evolved into a comprehensive financial services platform. It now offers stock trading, fixed deposits, gold investments, and even international stock options, catering to a tech-savvy millennial and Gen Z demographic. The platform’s user-friendly interface, zero-commission trading model, and educational resources have propelled it to over 70 million registered users, making it one of the fastest-growing fintech unicorns in India.
The SEBI nod comes at a pivotal time for Groww, which filed its draft red herring prospectus (DRHP) under its parent entity, Billionbrains Garage Ventures Pvt Ltd. The regulator’s approval, granted on August 28, 2025, allows the company to proceed with the IPO process, potentially listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by the fourth quarter of this fiscal year. While SEBI has not yet publicly posted the approval notice on its website, industry insiders confirm that the fintech firm is gearing up to file an updated DRHP soon, incorporating any regulatory feedback.
This IPO is expected to be one of the largest in India’s fintech history, rivaling listings like Paytm’s $2.5 billion debut in 2021 and PolicyBazaar’s $770 million raise. Groww’s offering could include a fresh issue of shares worth $800 million to $1 billion, with a possible offer-for-sale component from existing investors. The funds raised are likely to fuel expansion plans, including technological upgrades, market penetration into tier-2 and tier-3 cities, and potential acquisitions to bolster its product suite.
Groww’s journey to this milestone hasn’t been without challenges. The company has navigated a volatile market environment, marked by regulatory scrutiny on discount brokers and a slowdown in retail trading volumes. Recent data from the National Stock Exchange shows a 15-20% dip in daily active traders over the past year, attributed to market corrections and increased transaction taxes. Despite this, Groww reported impressive financials in FY24: revenue surged to ₹1,818 crore from ₹1,277 crore the previous year, while profits jumped to ₹458 crore from ₹73 crore. This growth is a testament to its resilient business model, which emphasizes low-cost operations and high user retention.
In the competitive landscape, Groww’s primary rival, Zerodha, founded by Nithin and Nikhil Kamath in 2010, has long dominated the discount brokerage segment with its no-frills approach. Zerodha boasts over 12 million clients and reported a profit of ₹4,700 crore in FY24, but it has steadfastly avoided venture capital funding and IPO plans, preferring bootstrapped growth. Groww, on the other hand, has aggressively raised capital—amassing $393 million across multiple rounds from marquee investors like Tiger Global, Sequoia Capital India, Ribbit Capital, and YC Continuity Fund. Its last funding round in 2023 valued the company at $3 billion, a figure that has more than doubled in just two years, reflecting investor optimism in its scalability.
Analysts view Groww’s IPO as a strategic counter to Zerodha’s market leadership. “Groww is positioning itself as the go-to platform for young investors who seek seamless digital experiences,” says Priya Sharma, a fintech analyst at KPMG India. “While Zerodha appeals to seasoned traders with its educational tools like Varsity, Groww’s gamified interface and diverse offerings could erode market share, especially among first-time investors.” The rivalry intensified when Groww overtook Zerodha in active client numbers last year, per NSE data, highlighting shifting preferences in a market where retail participation has exploded post-COVID.
Beyond competition, the IPO holds broader implications for India’s economy. The fintech sector has been a bright spot, contributing to financial inclusion by democratizing access to investments. With over 500 million smartphone users and growing digital literacy, platforms like Groww are bridging the gap between urban and rural investors. The government’s push for digital India, coupled with initiatives like UPI and Aadhaar-linked accounts, has created a fertile ground for such innovations. However, concerns linger over data privacy, algorithmic trading risks, and the potential for market manipulation by retail crowds.
Groww’s valuation target of $7-8 billion is conservative compared to earlier speculations of $8-9 billion, possibly reflecting caution amid global economic headwinds like inflation and geopolitical tensions. This approach contrasts with overhyped listings that have underperformed, such as Zomato’s post-IPO volatility. To manage the offering, Groww has roped in top investment banks including JP Morgan, Morgan Stanley, and Citigroup, ensuring a smooth roadshow to attract institutional investors.
Looking ahead, Groww plans to diversify beyond broking. Insiders reveal ambitions in wealth management, insurance, and even lending through partnerships. The company recently launched Groww Pay, a UPI-based payment service, and is exploring crypto offerings once regulatory clarity emerges. “Our vision is to make investing as simple as ordering food online,” Lalit Keshre, Groww’s CEO, stated in a recent interview, emphasizing user-centric innovation.
For retail investors, this IPO presents an opportunity to own a piece of a homegrown success story. However, experts advise caution: “Valuations in fintech can be frothy; focus on fundamentals like user growth and profitability,” warns Amitabh Chaudhry, MD & CEO of Axis Bank. As Groww prepares for its market debut, it not only challenges Zerodha but also inspires a wave of fintech startups eyeing public listings.
In conclusion, SEBI’s approval marks a watershed moment for Groww, validating its rapid ascent in India’s dynamic fintech ecosystem. As the company scripts its next chapter, all eyes will be on how it balances growth with governance in a competitive arena. This IPO could redefine investor engagement, fostering a more inclusive financial future for millions.
Last Updated on Friday, August 29, 2025 4:28 pm by Startup Times
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