Groww eyes up to $9 billion valuation, to file updated IPO papers this week

Groww Targets $9 Billion Valuation, Plans to File Updated IPO Papers This Week.

Expert Analysis:

• IPO Valuation: Groww, India’s largest investment platform by active users, is preparing to go public at a valuation of around Rs 80,000 crore ($9 billion).

• Listing Timeline and Valuation: Groww plans to file its updated DRHP this week, targeting a November listing, with a projected FY25 net margin of 44.85 percent. Initially aiming for a $7-8 billion valuation, strong FY25 results and robust Q1 FY26 performance could increase its valuation further.

• Strong Financial Performance: Groww reported a three-fold profit growth to Rs 1,819 crore in FY25, with revenue up 31 percent to Rs 4,056 crore, and continued year-on-year profit growth in Q1 FY26 despite industry-wide challenges.

• IPO Size and Structure: A 10 percent equity dilution implies an IPO of around $800 million-1 billion, mostly through an offer for sale by existing investors, with a small primary portion funding tech and new product investments.

• Market Position and Funding: Groww, with around 15 million active users, is valued close to Paytm, raised $200 million from Iconiq Capital and GIC at a $7 billion post-money valuation, while Angel One is valued at $2.5 billion.

• Industry Challenges: Broking firms face higher trading taxes, lower exchange rebates, and stricter retail F&O restrictions, causing Zerodha and Angel One to see a 20-30 percent drop in revenues and profitability since Q4 FY25, with most top brokers losing customers for eight consecutive months in 2025.