India’s largest stockbroker, Groww, has got the Securities and Exchange Board of India (SEBI) nod to go public. The issue is expected to hit the market in Q4 2025 and could raise USD 700M -1B (~INR 8,800 crore), valuing the company at USD 7-9 billion (~INR 79,000 crore).
Groww IPO approval is a landmark moment for Indian fintech and retail investing that could change the way capital markets look at profitable, scaled-up digital-first financial platforms.
Regulatory Path: The Pre-Filing Mechanism
Groww filed confidentially with SEBI on 26 May 2025 using the pre-filing mechanism. This route allows companies to get regulatory feedback without exposing sensitive financials too early.
For investors, SEBI’s approval means two things:
- Regulatory comfort with fintech models, especially after the scrutiny on payments firms and digital lenders.
- Maturity of Indian capital markets, which are now open to new economy companies listing domestically rather than overseas.
Groww’s parent entity, Billionbrains Garage Ventures, did a reverse flip from the US to India in 2024 and paid USD 160 million in taxes to facilitate the move.
Financial Performance
Unlike many global fintech peers, Groww is entering the IPO with strong profitability.
- Revenue (FY25): INR 4,056 crore
- Net Profit (FY25): INR 1,818 crore (3x jump YoY)
- Funding: USD 200 million (~INR 1,755 crore) raised in early 2025 at a USD 7 billion (~INR 61,450 crore) valuation from GIC and Iconiq Capital
This scale of profitability sets Groww apart from peers like Paytm, which went public amid steep losses, and aligns it closer to traditional brokerages like Zerodha, known for its robust margins.
Valuation Debate: Conservative vs Aspirational
Initial market reports suggested Groww IPO would be in the range of a conservative USD 7–8 billion valuation, aligned with subdued investor sentiment and equity market volatility. However, subsequent reports hint that the fintech may push towards USD 8–9 billion, riding on its market leadership, consistent profitability, and investor appetite for tech IPOs.
If Groww chooses a 10–15% equity dilution, the IPO proceeds could range between INR 700–920 million (~INR 6,145 to 8,070 crore). The structure will likely be a mix of fresh issuance and an OFS by existing backers, including Tiger Global, Peak XV Partners, and Ribbit Capital.
Market Position: Leader in Retail Investing
Groww has built its leadership across multiple fronts:
- Clients: 1.23–1.26 crore active users (as of August 2025)
- Market Share: Over 26% on NSE — India’s largest stockbroker by active clients
- Product Expansion: From mutual funds and stock broking to wealth management (via the USD 150M Fisdom acquisition in May 2025)
Despite losing about 11 lakh active investors in the first half of 2025 due to broader market volatility, Groww has retained its lead.
Competitive Landscape: Zerodha & Upstox
Groww IPO will inevitably be benchmarked against rivals:
- Zerodha: Still the most profitable broker, bootstrapped, and not IPO-bound. Its scale and efficiency make it a formidable competitor, but it lacks Groww’s venture-driven expansion strategy.
- Upstox: Backed by Tiger Global as well, but trails Groww in both active users and market share.
Strategic Moves Ahead of IPO
Groww is set to scale up:
- US-to-India Flip: Boosts domestic investor appeal and regulatory alignment.
- Fisdom Acquisition: Goes beyond broking into wealthtech and advisory, adds more revenue streams.
- IPO Proceeds Utilisation: Technology, business expansion and diversification.
This multi-pronged approach means Groww is looking to move from being a discount broker to a full-fledged wealth management platform.
Risks & Challenges
Despite strong fundamentals, key risks remain:
- Market Volatility: Retail participation has already dipped in 2025, and growth has been impacted.
- Regulatory Risks: SEBI has tightened fintech oversight, especially on digital advice and investor protection.
- Competitive Pricing Pressure: As discount broking commoditises, margins will compress unless Groww scales value-added services.
Final Words
Post listing, Groww will accelerate into wealth management, insurance and lending, and become a super-app for financial services. Groww IPO will be a test case for whether India’s public markets are ready to absorb large, profitable fintechs.
With SEBI’s approval, Groww is all set to deliver one of the most-watched IPOs in recent times. Its profitability, market leadership and bold strategic bets make it different from other fintech listings.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.