Groww’s Multi-Billion Dollar IPO Makes History as Indian Startup Lists at Home After U.S. Relocation
India’s largest retail brokerage firm, Groww, prepares to debut in the country’s public markets with a multibillion-dollar IPO. The listing marks a significant milestone, as it could make Groww the first Indian startup to list domestically following a relocation from the United States.
The venture is backed by prominent investors such as Microsoft CEO Satya Nadella, Y Combinator, Ribbit Capital, and Tiger Global. The IPO, slated for later this year, promises to serve as a substantial exit opportunity for global venture funds. According to draft IPO documents filed on Tuesday, these three investment firms are offloading approximately 236 million shares, accounting for about 41% of all shares offered to the public.
Recently, several Indian startups like Pine Labs, Razorpay, Meesho, and Zepto have returned their bases to India. Walmart-backed PhonePe relocated its headquarters from Singapore to India in 2022, while Flipkart, once its parent company also backed by Walmart, announced plans for a similar move earlier this year.
Last year, Groww became one of the first startups to shift its headquarters back to India from the U.S., with an estimated tax payment of around $159 million as part of the transition. By relocating their base to India, startups can align with evolving local regulations and meet requirements for domestic stock listings. The move also capitalizes on the growing retail investor base and increasing appetite for IPOs in the country, highlighting the maturity and allure of India’s capital markets compared to overseas alternatives.
While U.S. investors plan to divest a substantial portion of their holdings in Groww, founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal together are selling only about 4 million shares—a mere 0.7% of the total offer for sale, as per the draft prospectus. This modest sale indicates that Groww’s founders are holding onto nearly all their equity, contrasting the established investors who are utilizing the IPO as an exit strategy.
Groww aims to raise approximately $121 million in new funding from the IPO, alongside a secondary sale of 574 million shares by existing shareholders, estimated to be priced at roughly $568–$682 million. The IPO is expected to value the Bengaluru-based company at $9 billion.
In the fiscal year ending March 31, Groww reported a total income of approximately $462 million, up 45% year-on-year, with a profit after tax of around $208 million. The startup had recorded a net loss of about $92 million in the previous year, primarily due to expenses associated with its Delaware headquarters relocation.
As of June, Groww boasted approximately 37.4 million individual demat accounts (digital accounts that hold securities electronically), representing nearly 19% of India’s market. The platform also claimed 12.6 million active clients on the National Stock Exchange, equating to a 26% share. Additionally, it counted around 17 million active systematic investment plans (SIPs, or recurring monthly investments) and 9 million unique mutual fund investors, making it the only investment app in the country to surpass 100 million cumulative downloads.
The offering is being advised by JPMorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank, and Motilal Oswal Investment Advisors.
