Groww IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Billionbrains Garage Ventures Limited or Groww is a leading direct-to-customer digital investment platform offering a comprehensive suite of financial products and services aimed at enabling wealth creation for retail investors. Incorporated on January 9, 2018, and converted into a public limited company on April 11, 2025, Groww has rapidly emerged as India’s largest and fastest-growing investment platform by active users on the NSE as of June 30, 2025.

The company’s platform allows customers to invest and trade across multiple asset classes, including equities, derivatives, mutual funds, and bonds, while also providing access to personal loans and margin trading facilities. Its business is broadly categorised into (i) Broking Services – comprising stocks and derivatives, and (ii) Others – covering mutual funds, margin trading facility (MTF), consumer credit, and Groww AMC.

Groww operates through its key subsidiaries - Groww Invest Tech Private Limited (GIT) and Groww Creditserv Technology Private Limited (GCS). GIT, contributing 93.95% of consolidated revenue in FY2025, provides stock broking, depository, and mutual fund distribution services, along with MTF offerings. GCS, an RBI-licensed NBFC, focuses on digital lending through personal and consumer durable loans.

Built on strong technology capabilities, Groww’s ecosystem integrates investment, credit, and financing services within a single platform. This holistic approach has supported its scalable growth and robust financial performance, underscored by significant revenue expansion and profitability in Fiscal 2025.

IPO Details:

Object of the Issue

The Offer aims to raise funds to support the Company’s growth and strengthen its financial and operational base. The Net Proceeds are proposed to be utilized for the following purposes:

• Cloud infrastructure enhancement: ₹1,525.00 million to upgrade and expand technology capabilities.
• Brand building and marketing: ₹2,250.00 million for brand visibility, including initiatives like “Ab India Karega Groww.”
• Investment in subsidiary (GCS): ₹2,050.00 million to support its NBFC lending operations.
• Inorganic growth opportunities: For potential strategic acquisitions.
• General corporate purposes: To meet overall business and financial requirements.

These initiatives are expected to strengthen Groww’s ecosystem and support its long-term expansion plans.

Key Strengths

• Market Leadership and Brand Strength
  Groww stands as India’s largest and fastest-growing investment platform by active users on the NSE as of June 30, 2025. According to the Redseer report, it recorded the highest search interest among the top 10 brokers in Fiscal 2025, reflecting its strong brand recognition, customer trust, and growing popularity among retail investors.
• Pan-India Presence
  The platform enjoys a wide geographical footprint, with active users across 98.36% of India’s pin codes as of June 30, 2025. Notably, around 81% of its active users are based outside the Delhi NCR and top five metros, highlighting its strong penetration into Tier-II and Tier-III regions.
• Efficient Customer Acquisition and Retention
  Groww’s customer base is driven largely by organic growth, with 83.16% of new users in the quarter ended June 30, 2025, acquired through word-of-mouth and referrals, ensuring low acquisition costs.
• High Retention and User Engagement
  The platform demonstrates robust user loyalty, with 77.70% retention among users active for over three years and 88.50% retention among those using two or more products. Further, Groww’s high engagement levels are evident from a 56.29% DAU/MAU ratio and an average user time of 65.5 minutes per day in Fiscal 2025.

Risks

• Regulatory and Policy Changes
  The Company operates under multiple regulatory frameworks governed by SEBI and RBI. Any adverse changes, such as SEBI’s revisions in derivatives contract size and fee caps or RBI’s higher risk weights on unsecured loans, could impact revenue streams, profitability, and overall business performance.
• Technology and Cybersecurity Risks
  Groww’s operations rely heavily on uninterrupted digital platform access. Past technical issues, such as firewall failures, underscore its vulnerability to system outages, cyber threats, and data breaches. Any future disruptions could affect customer trust, lead to reputational damage, and materially impact business continuity.
• Market-Linked Business Exposure
  The Company’s performance is closely tied to overall market activity and investor sentiment. A significant downturn or prolonged volatility in domestic or global financial markets arising from geopolitical or economic uncertainties could reduce trading and investment volumes, adversely affecting revenue and profitability.

Financial Snapshot:

(Amt in millions except for EPS & NAV)

(Amt in millions)

Peer Comparison:

As of March 2025, India’s Investment and Wealth Management sector was estimated to have a Total Addressable Market (TAM) of around ₹1.1 trillion. This market is projected to expand strongly, recording a Compound Annual Growth Rate (CAGR) of 15–17% between FY2025 and FY2030.

Conclusion:

Groww has established itself as one of India’s trusted and fastest-growing digital investment platforms, supported by a strong brand, technology-driven ecosystem, and a rapidly expanding user base across the country. Over the years, the company has demonstrated consistent growth in both scale and financial performance, reflecting its robust business model and customer-centric approach.

From a valuation perspective, the issue is priced at a descent compared to broking peers, it appears reasonable when viewed in the context of Groww’s superior growth trajectory, diversified revenue streams, and long-term scalability. The company is well-positioned to capitalize on the rising financialization of savings in India, with increasing participation from younger investors and deeper penetration into Tier-II and Tier-III cities.

With strong fundamentals, improving profitability, and favorable industry tailwinds driven by growing investor awareness and digital adoption, Groww stands to benefit significantly from India’s expanding investment and wealth management landscape. Considering its leadership position, consistent performance, and promising growth prospects, investors may consider subscribing to the issue with a long-term investment perspective.