According to the Press Trust of India (PTI), Groww has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The Bengaluru-based online investment platform, operating under parent entity Billionbrains Garage Ventures, is preparing to raise between $700 million and $1 billion via a combination of fresh equity issuance and offer-for-sale (OFS), potentially valuing the company at around $7 billion.
The IPO follows the confidential filing of its draft red herring prospectus (DRHP) with SEBI through its pre-filing mechanism in May 2025.
Founded in 2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww has evolved from a mutual fund distribution platform into a comprehensive digital investment ecosystem, offering equities, ETFs, IPO access, digital gold, futures and options, and more. As of August 2025, it has surpassed 15 million users across 900 cities in India.
Its investor base includes backers such as Tiger Global, Alkeon, Lone Pine Capital, and Ribbit Capital, with recent funding rounds also featuring Steadfast and ICONIQ.
ICONIQ committed $150 million to Groww as part of its Series F pre-IPO funding, valuing the company at approximately $7 billion—a sharp rise from its $3 billion valuation during the Series E round in 2021. Additionally, an Inc42 report noted that Groww experienced a 250% valuation increase.
However, alongside this valuation surge, Groww has faced regulatory scrutiny. In July 2024, Groww Asset Management Ltd and its trustee settled a SEBI case related to scheme-related expenses that were improperly borne by the AMC instead of the schemes, as required by norms. The settlement involved a payment of Rs 9 lakh, without admitting or denying the findings.
Moreover, Groww Invest Tech faced further regulatory action. It settled with SEBI for Rs 47.85 lakh over alleged lapses in compliance, particularly concerning business continuity, surveillance systems, incorrect client statements, and service operations, again resolving the case without admitting liability.
The platform also experienced a technical outage in January 2024, which prevented clients from placing trades. SEBI initiated enforcement action, leading Groww Invest Tech to pay Rs 34.12 lakh in May 2025 to settle the matter; once more, the company responded without admission of wrongdoing.
Groww strengthened its financial standing in FY25, according to Registrar of Companies (RoC) filings seen by YourStory. The brokerage platform reported Rs 4,056 crore in revenue, marking a 31% year-on-year rise from Rs 3,145 crore in FY24. The company also achieved a net profit of Rs 1,819 crore, reversing a Rs 799 crore loss from the prior year and representing a three-fold profit surge.
Segment-wise, Groww derives its income from two principal streams: brokerage (equity, F&O) and interest on deposits. The platform operates a zero-commission model for mutual funds, using them primarily as a lead-generation tool to cross-sell higher-margin services such as equity and derivatives trading.
Analysts note that F&O broking accounts for 75–80% of Groww’s broking income and that the firm remains heavily reliant on retail broking to drive its primary revenue.
For potential investors, the FY25 filings highlight both revenue consistency and profit growth, showing that Groww has transitioned from a loss-making fintech to a profitable brokerage platform. These numbers position the company as one of India’s most financially resilient digital investment platforms ahead of its planned public offering.
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