Groww IPO: Know about the firm's business model, strengths and risks ahead of public issue

The company allows customers to invest and trade across a variety of financial products like stocks, derivatives, mutual funds, bonds, and IPOs. Besides this, its investors can also avail a margin trading facility and personal loans.

Groww IPO details

The company aims to raise ₹6,632.3 crore through its public issue, which is a 100% book-built and includes a fresh issue and offer-for-sale of over 66 crore shares

The company has fixed the price band of the issue at ₹95 to ₹100 per share. The lot size, or the minimum bid quantity to apply for the issue, is 150 shares. This equates to a minimum investment amount of ₹15,000 per lot at the upper end of the price band for retail investors.

Billionbrains Garage Ventures (Groww) has appointed Kotak Mahindra Capital as the book-running lead manager of the IPO, while MUFG Intime India Pvt Ltd is the registrar for the issue.

Groww IPO timeline

Groww IPO will remain open for bidding from November 4, 2025, to November 7, 2025. After the bidding is closed, the allotment of shares is expected to be finalised on November 10.

Successful bidders can expect the shares to be credited to their demat accounts by November 11, with others receiving refunds on the same day. Groww shares are scheduled to list on the BSE and NSE on November 12, 2025.

Financial snapshot

Groww IPO objective

The money raised from the IPO will be used towards the following objectives:

• Funds for cloud infrastructure (14.3%): The company will utilise ₹152.5 crore as expenditure towards cloud infrastructure.
• Brand building and marketing (21.2%): The company will utilise ₹225 crore towards brand building and performance marketing activities.
• Investment in NBFC subsidiary (19.3%): The company will utilise ₹205 crore to invest in its material subsidiary, Groww Creditserv Technology Private Limited (GCS), an NBFC, to augment its capital base.
• Investment in MTF business (15.8%): The company will use ₹167.5 crore towards investing in its material subsidiary, Groww Invest Tech Private Limited (GIT), for funding its margin trading facility (MTF) business.
• General corporate purposes (29.4%): Part of the IPO proceeds will be used for general corporate purposes and unidentified acquisitions

About the company

The company had 1.44 crore active users as of June 30, 2025 and 1.81 crore transacting users, while its investment app has over 10 crore cumulative downloads. The company has a diverse customer base in India with a presence in 98.36% of pin-codes as of June 30, 2025, and ~81% active users are outside the top-6 cities, highlighting its deep penetration across cities, towns and villages in India.

As of March 31, 2025, the company had an active user base of 1.39 crore users, rising 47.8% YoY. Between FY23 and Q1FY26, the active user base grew at a CAGR of 52.74%. Meanwhile, the platform's Annual Average Revenue per User (AARPU) rose to ₹3,339.28 from ₹2,540.99 in FY23. Daily active users (DAU) and monthly active users (MAU) stood at 71 lakh and 1.26 crore, respectively, during the same period.

Groww's user base is dominated by young investors, with ~45% of them being below 30 years of age, while ~21% are between the ages of 31 and 35. Nearly 43.21% of new transacting customers of FY25 are first-time demat account holders of Groww, while the average daily time spent on the platform by active users (individually) was 65.50 minutes in FY25, which is also reflected in the DAU/MAU ratio of transacting users, which stood at 56.29% in FY25.

The company relies on its in-house technology to deliver a better experience for customers. Its systems have the bandwidth to handle approximately five crore users simultaneously and execute approximately 5 crore orders per day. Its in-house payment gateway, Groww UPI (GUPI), processed 77.84% of overall deposit transactions during Q1FY26, compared to 56.75% for Q1FY25. Additionally, the platform uses machine learning and artificial intelligence for fraud prevention, customer onboarding and customised user experiences.

The company continues to expand its share in the market, build new products, services and features for its customers, invest in technology and pursue strategic acquisitions and investments.

Strengths and opportunities

• Strong brand presence: Groww has established itself as one of India’s most recognised retail investing platforms. As of June 30, 2025, it recorded active users across 98.36% of India’s pin codes, with ~81% of users outside the top-6 cities, with strong tier-II and tier-III penetration. It captured 38.18% of total new app downloads among the top 5 brokers since FY22, with 83.16% of customers acquired organically, resulting in lower customer acquisition costs and high brand recall.
• High customer retention and engagement levels: The company enjoys strong user stickiness supported by its content-driven engagement strategy. Across cohorts that completed 3 years on the platform, 77.7% of users remained active, while initial quarterly retention post-acquisition has consistently ranged between 84.79% and 92.98%. In FY25, users spent an average of 65.50 minutes per day on the platform, and the DAU/MAU ratio stood at 56.29% in FY25, underscoring a loyal and active customer base.
• Customer-centric and intuitive platform design: Groww’s interface focuses on simplicity and accessibility. The app design incorporates intuitive colour cues, clear information hierarchy, and built-in help touchpoints via AI-enabled support. This focus attracts both first-time investors and power traders, strengthening overall customer satisfaction and conversion.

Risks and threats

• Dependence on market cycles and investor sentiment: Groww’s performance is tightly linked to capital market activity and investor sentiment. NSE active clients declined from ~3.8 crore in June 2022 to ~3.1 crore in April 2023, while Groww’s new transacting users dropped from 29 lakhs in FY22 to 24 lakhs in FY23. Similarly, during Q1FY26, new transacting users fell to 7.6 lakhs, almost 50% of the 16.7 lakhs recorded a year earlier. A slowdown in market participation can materially affect trading volumes and revenues.
• Platform reliability and technology risk: Uninterrupted access to Groww’s digital platform is crucial for user trust and transaction continuity. The company incurred 27.62% of total expenses in software, server, and technology expenses in FY25. Despite such investments, instances of downtime have occurred, such as firewall failures and server outages in FY24. Prolonged or repeated disruptions, even if brief, could hurt customer experience, trading activity, and brand reputation.
• Regulatory changes: The company operates under close oversight from SEBI, RBI, and stock exchanges. SEBI’s October 2024 derivatives reforms reduced retail participation in F&O trading by ~36.31% and caused a 38.07% contraction in notional daily turnover between June 2024 and June 2025. RBI’s November 2023 circular increased risk weights on consumer credit exposures, impacting the company’s NBFC subsidiary, Groww Creditserv. Frequent regulatory changes could impact margins, product pricing, and customer activity.