Stock broking platform Groww eyes $1 bn IPO, files draft papers via confidential route: Report

Stock broking platform Groww has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) estimated at $700 million to $1 billion, PIT reported on Monday, citing sources familiar with the matter.

The filing, made through the confidential pre-filing route, comprises a fresh issue of equity shares and an offer-for-sale (OFS) component.

Backed by prominent investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, Groww plans to use the IPO proceeds for technology development and business expansion, according to sources cited by PTI.

The offering will reportedly be managed by JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets, Axis Capital, and Motilal Oswal Securities.

During FY25, the platform added 34 lakh new accounts, with its active client base growing from 95 lakh in March 2024 to 1.29 crore in March 2025, a 36% year-on-year increase. Its market share also expanded from 23.28% to 26.26% over the same period, according to data from the National Stock Exchange (NSE).

The company turned profitable in FY23, reporting a profit of ₹449 crore on revenue of ₹1,277 crore. In FY24, it posted an operating profit of ₹535 crore and revenue of ₹3,145 crore, though a net loss of ₹805 crore was recorded due to a one-time tax payment of ₹1,340 crore linked to its domicile shift to India.

Earlier this month, Singapore’s sovereign wealth fund GIC sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Billionbrains Garage Ventures, Groww’s parent company.

The confidential pre-filing route, chosen by Groww, allows companies to delay public disclosure of IPO details until later stages, offering greater flexibility.

This approach, which extends the IPO launch window to 18 months from SEBI’s final comments and permits modifications to the primary issue size by up to 50%, has gained traction among Indian firms.

Recent examples include Shiprocket, Tata Capital, PhysicsWallah, and Imagine Marketing (boAt). In 2024, Swiggy and Vishal Mega Mart also pursued IPOs via this route, while OYO and Tata Play opted for it in 2023 and 2022, respectively, though both later withdrew their plans.

Market experts highlight that the confidential filing route reduces pressure on companies to expedite their public offerings, providing strategic flexibility in volatile markets.