Stock broker Groww picks bankers for IPO at $8 billion valuation: report

22 Jan 2025, 01:17 PM

The company is expected to proceed with an IPO this year, and may seek to raise $750 million or more at a valuation of $7-$8 billion.

Team Head&Tale

Stock-broking firm Groww, run by Billionbrains Garage Ventures, has reportedly appointed JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd for a potential initial public offering.


The company is expected to proceed with an IPO this year, and may seek to raise $750 million or more at a valuation of $7-$8 billion, Bloomberg reported. 

"Considerations are preliminary and details such as size and timing could change. More banks may also be added to help arrange the deal," the media report citing sources said.

Founded in 2016 by four Flipkart executives, Groww is one of the largest stock broking firm and has more than 50 million customers. It includes Microsoft chief executive officer Satya Nadella, Ribbit Capital, Tiger Global, Peak XV among its investors. 

Recently, the Bengaluru-based company moved its domicile from the US back to India -- which also saw its fair market valuation being reduced to under $2 billion, down from its previous $3 billion.

It paid Rs 1,340 crore ($160 million) in taxes to the US government during the process of bringing back its parent entity to India, based on this new valuation, ET had then reported.

Groww's revenue from operations surged to Rs 3,145 crore in FY24, up from Rs 1,435 crore in FY23. The stockbroking platform reported a net loss of Rs 805 crore in FY24, largely due to a one-time tax payment of Rs 1,340 crore for relocating its domicile to India. Despite this, the company remained operationally profitable, with profits of Rs 535 crore in FY24 compared to Rs 458 crore in FY23.

For fintechs, stricter licensing rules are a bigger reason to move to India than IPO-related goals. However, the move can be very expensive—costing between $700 million and $1 billion. The cost is shared between the company and its investors, a fintech founder, considering to move its entity back to India, told me earlier.

For example: PhonePe moved quickly but spent more. It paid a nearly $1 billion tax bill to the Indian government after moving its headquarters from Singapore to India. However, "slower processes that take up to two years can save $100–200 million," the fintech founder had then added.