Indian investment platform Groww is in advanced talks to raise $200 million in a pre-IPO funding round as it prepares for a public listing, which is expected to happen by late 2025 or early 2026.
According to sources cited in media reports, the fintech unicorn is negotiating with prominent investors including Singapore’s sovereign wealth fund GIC and returning backer Tiger Global. The proposed fundraise is expected to value Groww at around $6.5 billion, more than double its last known valuation.
Doubling Down on Growth
Based in Bengaluru, Groww has emerged as one of the top stockbroking platforms of India with over 13 million monthly active accounts. The platform witnessed a hefty revenue increase during FY24 at ₹3,145 crore. However, it also posted a net loss of ₹805 crore during the same period, largely attributed to a one-time tax expense of ₹1,340 crore following its shift in domicile from the US to India — a move many Indian startups are embracing ahead of domestic IPOs.
Groww has secured nearly $400 million from marquee investors like Peak XV Partners, YC Continuity, and Tiger Global. The startup’s last fundraising round was its $251 million Series E in October 2021, pegged its valuation at $3 billion. Since then, the company has held off on new funding.
Also Read: Groww’s Surge in the Indian Stock Broking Market
IPO Plans Taking Shape
As Groww gears up for an IPO, insiders indicate the company is looking to raise around $1 billion from its IPO, with valuation hopes of between $6 billion and $8 billion. The pre-IPO funding is thus viewed as a strategic move towards strengthening its balance sheet, having robust financials before making its public listing.
This pre-listing round could also help Groww mitigate any valuation volatility at the time of IPO while signaling investor confidence in its long-term business model. It comes at a time when Indian equity markets are bullish, and investor appetite for tech-driven financial platforms remains high.
Strategic Backing
The entry of heavyweight investors such as GIC highlights the more enormous institutional appetite for India’s flourishing fintech ecosystem. Tiger Global’s return, too, indicates ongoing faith in Groww’s prospects, even as competition intensifies, and peers such as Zerodha and Upstox are growing aggressively.
Outlook
Groww’s IPO would rank it among the few Indian fintech startups to be listed on the public markets, after Paytm and Policybazaar. However, the success of the company to turn profitable and retain customers as the regulators increase the standards will be closely monitored.
Also Read: Groww IPO Plans to target a valuation between $6-$8 billion.
