Stockbroking company Groww is planning to launch an IPO. According to sources, the company has discussed with many investment bankers. The company intends to raise about $700 million at a valuation of $7-8 billion. “Groww has approached investment bankers to start the process of its IPO. However, the timeline has not been finalized yet. It will depend on market conditions,” said a source.
This IPO is coming within about a year of the company completing the registration of its holding company in India from the US. Now it has joined those big fintech companies which are bringing their business back to the country due to better economic policies and the growing Indian market.
SEBI strict on F&O trading
The Bengaluru-based company’s listing plans come at a time when stock brokers in the country are grappling with recent moves by market regulator SEBI to curb futures and options trading. This step of SEBI has been taken to stop betting by small retail traders. The move follows a 30 per cent decline in F&O trading in December following deregulation. This segment contributes about 50 percent of the total revenue of the country’s top stockbroking firms.
Groww overtakes Zerodha
Groww, one of the leading full-stack financial services firms in India, overtook Zerodha in terms of the number of active investors last year. Groww has added more than 5 million users by November 2024, which is more than double the number of people who signed up last year. Compared to last year, it has gained an edge over its nearest competitors Zerodha and Angel One.
Actually, Groww’s lead over Zerodha is now around Rs 50 lakh. According to market exchange data as of December 2024, Groww has about 1.3 crore active investors, while Zerodha has about 81 lakh and Angel One has about 78 lakh active investors.
Groww’s Financial
Bangalore based discount broker groww Consolidated operating profit of the company increased by 17 per cent to Rs 535 crore for the year ending March 2024, from Rs 458 crore a year ago. Its consolidated revenue for FY23 stood at Rs 1435 crore.
Groww suffered a consolidated net loss of Rs 805 crore due to a one-time tax of Rs 1,340 crore on domicile transfer. During the last financial year, Growo shifted its registered office from Delaware, USA to Bengaluru.