Groww, an Indian online brokerage platform, made a significant impact on the financial market with its initial public offering (IPO) on Wednesday, emerging as the largest listing by a fintech company in India this year. The IPO raised ₹66.3 billion (approximately $748 million), and the shares experienced a remarkable climb of 29% from their issue price, closing at ₹128.85. This surge reflects a positive trend for the startup, which began trading at ₹112, 12% higher than its initial offering price of ₹100, leading to a market capitalization of around ₹795 billion (about $9 billion).
This event is indicative of a broader resurgence in Indian startup IPOs, with other companies such as Lenskart and Pine Labs also making headlines this week. Pine Labs, with a fully subscribed IPO of $440 million, is set to debut shortly, alongside other startups like Physics Wallah and Capillary Technologies which are preparing to enter the stock exchange.
Founded in 2016 by former employees of Flipkart, Groww has leveraged the increasing interest among Indian retail investors. The platform aims to simplify investing for beginners, competing with established players like Zerodha and Angel One. As of June, Groww boasted more than 14 million active users, with over 12.6 million engaged clients on the National Stock Exchange (NSE). Although stockbroking is its primary focus, Groww has diversified into lending, payments, asset management, and insurance, although these segments generate lower revenue compared to its brokerage operations.
In the fiscal year ending March 2025, Groww reported a revenue of ₹39 billion ($440 million) and a net profit of ₹18 billion ($206 million). The IPO was notably supported by strong institutional demand, leading to oversubscription by nearly 18 times and substantial participation from anchor investors, which totaled around ₹30 billion in pre-IPO placements.
During the listing ceremony, co-founder and CEO Lalit Keshre reflected on the company’s remarkable growth from its initial goal of acquiring 100 customers to actually reaching 600 in its first month. This success was celebrated by venture investors, with many expressing excitement over the financial returns Groww has generated for them, emphasizing the evolving potential of Indian investments. Notably, Groww made history as the first Indian startup backed by the prominent startup accelerator Y Combinator to go public, and it became the first Indian unicorn to list after moving its corporate base back to India from Delaware.
Going forward, Groww intends to utilize the capital raised from its IPO to further enhance its cloud technology infrastructure, boost marketing strategies, and invest in its lending and margin trading segments, while also considering potential acquisitions. This strategic roadmap aims to solidify its position as a leader in India's fast-evolving fintech landscape.