Fintech Unicorn Groww Set to File Confidential IPO Papers With Sebi

Investment tech start-up Groww is planning to file draft papers with the Securities Exchange Board of India (Sebi) for an initial public offering (IPO) through a confidential pre-filing in the next two weeks, according to a report published by MoneyControl. With this, the fintech unicorn is expecting a “conservative” valuation of $7-8 billion for its IPO amid ongoing market volatility.

The start-up is securing $150 million in a pre-IPO funding round from Singapore’s GIC, valuing the Bengaluru-based fintech at $7 billion on a post-money basis, the report said. It added that Groww aims to raise between $250 million and $300 million in this round, which is expected to wrap up within the next two weeks.

Groww shifted it base back to India from the Unites States last year as it started preparations to go public this year. The fintech paid a hefty tax of Rs 1,340 crore to the US government for the process. It reported a net loss of Rs 805 crore in FY24, and the total revenue stood at Rs 1,435 crore during the year under review.

The fintech, founded by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, started its journey as a direct mutual fund investment platform in 2017. But later, it expanded into stock trading, futures & options, IPO, and other financial products. Besides this, it also operates an asset management business and was reportedly looking to foray into the wealth management business under a separate entity “W”.

Apart from Groww, other fintech start-ups looking to go public this year, include Razorpay, PhonePe, Moneyview, and others.

Groww May Acquire Fisdom

This came months after Groww started discussions to acquire Fisdom --- a payU-backed wealthtech start-up. The Bengaluru-based start-up is valued between $140 million and $160 million. This potential acquisition is seen part of Groww’s strategy to expand into the wealth management sector. The discussions were in the early stages.

Groww is also exploring acquisitions involving other online wealthtech start-ups and offline firms. Additionally, Fisdom’s early investors, including PayU, are reportedly looking to sell some of their stakes through a secondary share sale or a fundraising round.

Fisdom was founded in 2016 by Subramanya S V and Anand Dalmia. The platform manages personalised online investment accounts that users can access from their PC, tablet or smartphone anytime and anywhere.