India’s Largest Retail Stockbroker Groww to File for IPO in 10-12 Months
Valuation of $6-8 Billion Expected
Groww, India’s largest retail stockbroker, is planning to file for an initial public offering (IPO) in 10-12 months, seeking a valuation between $6 billion and $8 billion, according to sources familiar with the matter. This would be the first IPO by a digital trading platform in India, with a targeted valuation more than double its last valuation of $3 billion in October 2021.
IPO Preparation Underway
Groww has begun talks with investment banks and will soon choose advisors for the IPO. The company, which also enables customers to invest in mutual funds and make UPI transactions, shifted its domicile to India from the U.S. last year as part of IPO preparations.
Growing User Base
The trading app has pulled ahead of competitors in India’s crowded retail investing market, with 13.2 million active users in December, compared to closest rival Zerodha’s 8.1 million users, according to National Stock Exchange data. Groww is adding between 325,000 to 550,000 new users every month, more than twice the rate of its competitors.
India’s IPO Boom
India has emerged as a bright spot for tech listings globally, with seven technology startups going public in 2024. Food delivery platform Swiggy’s $1.35 billion IPO was the largest tech listing in the world last year. More than 20 Indian startups are planning IPOs in 2025, including business-to-business marketplace Zetwerk, managed workspace provider Table Space, Prosus-owned PayU, and pharmaceutical platform PharmEasy.
Factors Contributing to IPO Surge
According to Abhinav Bharti, JPMorgan’s head of equity capital markets for India, India’s growing domestic capital and policy continuity are among the factors contributing to the IPO surge in the country. "No other country globally provides you with this much political certainty and continuity of policy," Bharti said. "You can argue against a policy decision, but you cannot argue against the fact that they have been consistent."
Conclusion
Groww’s IPO is expected to be a significant milestone in India’s growing tech startup ecosystem, which has seen a surge in listings in recent years. With a valuation of $6-8 billion, the company is poised to make a significant impact in the retail investing market.
FAQs
Q: What is the expected valuation of Groww’s IPO?
A: The expected valuation is between $6 billion and $8 billion.
Q: How many active users does Groww have?
A: Groww has 13.2 million active users, according to National Stock Exchange data.
Q: How many Indian startups are planning IPOs in 2025?
A: More than 20 Indian startups are planning IPOs in 2025, including business-to-business marketplace Zetwerk, managed workspace provider Table Space, Prosus-owned PayU, and pharmaceutical platform PharmEasy.
Q: What are the factors contributing to the IPO surge in India?
A: India’s growing domestic capital and policy continuity are among the factors contributing to the IPO surge, according to Abhinav Bharti, JPMorgan’s head of equity capital markets for India.
