Groww IPO Mints Massive Returns, Fully Repays Two US Funds

As fintech major Groww made a strong Dalal Street debut on November 12, the new-age broking firm has unlocked multibagger exits for several global funds that backed it at the early stage. The company was listed at a premium of 14% over its issue price of ₹100 per share on the BSE, while 12% on NSE.

In a post on X (formerly Twitter), Anu Hariharan, former Y Combinator Continuity head and cofounder of Avra Capital revealed that the fintech start-up has “returned capital many times over”, and fully returned at least two US funds and likely delivering one of the best IRRs of the decade. It is pertinent to note that Hariharan has invested in Groww.

“Many US LPs have asked me if Indian investments would ever make money. Ecosystems take time — but here’s Groww, returning capital many times over and returning at least two US funds fully and likely delivering one of the best IRRs of the decade (Launching Stocks in 2020 → IPO in 2025),” Hariharan added.

Investors, including peak XV Partners (formerly Sequoia India), Ribbit Capital, and Tiger Global are expected to see among their highest returns from the Bengaluru-based platform’s listing. Groww shares later climbed as much as 24$ over the IPO price to ₹124. The company’s market capitalisation now stands at ₹76,169.84 crore.

Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, has set a price band of ₹95–100 per share for its initial public offering (IPO), targeting a valuation of over ₹61,700 crore (about $7 billion). According to a public announcement, the ₹6,632 crore IPO opened for public subscription on November 4 and closed on November 7.

The issue comprises a fresh equity share offering worth ₹1,060 crore and an Offer for Sale (OFS) of 57,41,90,754 equity shares by promoters and existing investors.

As part of the OFS, the company’s promoters, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, are each offering up to 1 million shares. Investor shareholders, including Peak XV Partners Investments VI-1, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund LP, are also offloading part of their holdings.

Groww’s founders collectively own 27.97% of the company and have been listed as promoters with a 20% lock-in for 1.5 years post-listing. In the IPO, they are selling only about 0.07% of the company’s total shares.

Founded in 2017, Bengaluru-based Groww is a fintech platform that enables retail investors to directly access a wide range of investment and wealth creation opportunities. The company offers a seamless digital interface for investing in mutual funds, stocks, derivatives (F&O), ETFs, IPOs, digital gold, and even US equities.