Groww, the Indian fintech giant, is in advanced talks to raise USD 200 million (~INR 1,713 crore) in pre-IPO funding, which will take the company’s valuation to a whopping USD 6.5 billion (~INR 55,691 crore). According to multiple sources, the discussions involve Singapore’s sovereign wealth fund GIC and existing investor Tiger Global.
Groww Pre IPO – Big Funding
This funding round is expected to close soon as Groww gets ready to file for IPO in the next few months. The company was last valued at USD 3 billion (~INR 25,703 crore) in 2021 and is doubling its valuation in fintech and wealth tech dealmaking. The Economic Times had reported earlier that Groww’s IPO could raise around USD 700 million (~INR 6,000 crore), which is in line with the trend of new-age startups listing in Indian public markets.
Competition Heats Up
Groww Pre IPO move is part of an increasingly competitive landscape where rivals are also raising funds to strengthen their position. Mumbai-based competitor Dhan is also in talks to raise USD 200 million (~INR 1,713 crore) at a USD 1.2 billion (~INR 10,281 crore) valuation, while Groww is simultaneously exploring acquisition talks with wealth management firm Fisdo, backed by PayU. This strategic diversification indicates Groww’s intent to expand beyond stockbroking into broader wealth management and lending services.
Market Leadership
Groww has established itself as India’s largest stockbroker in terms of active clients, with a user base of 13 million as of February 2025. This is more than Zerodha (8 million) and Angel One (7.7 million). The company started as a mutual fund distributor but has since expanded significantly into stock trading, lending, and wealth management.
With a 26.59% market share in stockbroking, Groww has become India’s top stock broker. The company’s approach involves not just keeping up but also pushing forward with tech upgrades and product diversification.
Regulatory Headwinds and Shifts
The company’s growth trajectory is amidst headwinds from regulatory clampdown on futures and options (F&O) trading by SEBI. For brokerages like Groww, which derives over 70% of its revenue from F&O trades, SEBI’s move has had a tangible impact. February 2025 saw Groww’s active traders drop by more than 2,00,000 which is the first decline in two years. Zerodha and Angel One also saw a drop of around 1,50,000 traders each. Zerodha’s CEO Nithin Kamath had earlier warned of a 30% drop in industry-wide order volumes.
New Business and Expansion
Groww is setting up a new business unit called ‘W’ for wealth management services. This is in response to market demand and regulatory changes. In November 2023, the company also shifted its domicile from the US to India to make the listing process smoother for its IPO in Indian exchanges. Financially, the company closed FY24 with revenue of INR 3,145 crore and a loss of INR 805 crore, which was mainly due to a time tax payment to US authorities post-domicile shift.
Conclusion
Groww’s upcoming USD 200 million (~INR 1,713 crore) pre-IPO fundraise is not just a reflection of its market leadership but also a strategic move to navigate regulatory changes, competition, and the evolving fintech landscape in India. With plans to file IPO papers in the next few months and expand its offerings, the company is becoming a one-stop financial shop for India’s growing investor base.
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