Groww, India’s largest retail stockbroker, is gearing up to make history by filing for an initial public offering (IPO) within the next 10 to 12 months. The Bengaluru-based fintech giant is reportedly seeking a valuation between $6 billion and $8 billion, marking a significant leap from its $3 billion valuation during its last funding round in October 2021.
Pioneering Digital Trading in India
If successful, Groww’s listing will be the first-ever IPO by a digital trading platform in India. This move underscores the company’s dominance in the rapidly growing retail investing space, where it has outpaced competitors with impressive growth metrics. The app boasts 13.2 million active users as of December, significantly ahead of its closest rival, Zerodha, which has 8.1 million users. Adding between 325,000 and 550,000 new users each month, Groww is expanding at more than twice the rate of its peers.
The platform’s popularity stems from its user-friendly interface and diverse investment options. In addition to stock trading, Groww enables users to invest in mutual funds and make Unified Payments Interface (UPI) transactions, catering to a broad spectrum of retail investors across India.
Strategic Preparations for the IPO
To pave the way for its public listing, Groww has initiated discussions with investment banks and is in the process of selecting advisors. As part of its IPO preparations, the company shifted its domicile from the United States to India last year. This strategic move aligns with its ambitions to tap into India’s burgeoning domestic capital markets.
Groww’s impressive growth trajectory and strategic planning reflect its commitment to capitalizing on the evolving Indian financial landscape. With backing from prominent investors such as Peak XV, Tiger Global, and Alkeon, the platform is well-positioned to make a significant impact on the Indian stock market.
India: A Hotbed for Tech IPOs
Groww’s impending IPO comes at a time when India is emerging as a global hotspot for tech listings. The country witnessed seven technology startups going public in 2024, including the $1.35 billion IPO of food delivery platform Swiggy, which was the largest tech listing worldwide last year.
Looking ahead, over 20 Indian startups are gearing up for IPOs in 2025. Notable names include B2B marketplace Zetwerk, managed workspace provider Table Space, Prosus-owned PayU, and pharmaceutical platform PharmEasy. The collective momentum highlights India’s growing prominence in the global tech and financial sectors.
Unprecedented Market Growth
India’s robust economic growth and consistent policy framework have created a fertile environment for capital markets. The market capitalization of Indian-listed companies has doubled to $5.3 trillion in 2024, compared to $2.6 trillion in 2014. Additionally, daily trading volumes have tripled over the same period, reaching $15 billion.
Industry experts attribute this success to the country’s political stability and policy continuity, which have fostered confidence among investors. According to Abhinav Bharti, a prominent equity capital markets expert, India offers an unparalleled combination of policy consistency and domestic capital growth. “No other country globally provides this level of political certainty and continuity of policy. While you may debate individual policy decisions, the consistency in their implementation is undeniable,” he remarked.
A New Chapter for India’s Fintech Ecosystem
As Groww inches closer to its IPO, its success could serve as a catalyst for other digital-first platforms eyeing public listings. The milestone will not only solidify Groww’s leadership in the Indian fintech space but also underscore India’s potential as a global leader in the digital economy.
For retail investors and industry stakeholders alike, Groww’s IPO represents a promising opportunity to participate in the growth of one of India’s most innovative and rapidly expanding companies. With a vision to democratize investing and empower millions, Groww is set to redefine the landscape of retail trading in India.
