Ahead of its initial public offering, online brokerage firm Groww is expected to raise up to $300 million in a Series F funding round as part of its efforts to more than double its market valuation. The round is expected to value Groww at around $7 billion—more than twice its previous valuation of $3 billion from the Series E round in 2021.
According to a recent report by Moneycontrol, US-based investment firm Iconiq Capital is expected to invest $150 million in Groww as part of the pre-IPO fundraising. This comes as the country’s leading stockbroker by number of active investors confidentially submitted IPO documents through the Securities and Exchange Board of India’s (SEBI) pre-filing route on May 26.
SEBI is likely to review and respond to the IPO proposal within the next two to three months, the report said.
Earlier, Singapore’s sovereign wealth fund GIC applied to the Competition Commission of India (CCI) for approval to invest in Groww at a post-money valuation of $7 billion. The news portal says Iconiq Capital is also expected to file a similar application soon.
Given current market volatility, Groww is reportedly targeting a conservative IPO valuation in the range of $7–8 billion. Based on this estimate, a typical equity dilution of 10–15% would place the IPO size between $700 million and $920 million. Specifics regarding the structure of the offering—including the size of the fresh issue and the offer-for-sale—have not yet been disclosed.
Headquartered in Bengaluru, Groww competes with rivals like Zerodha and Upstox in the online discount broking space. In addition to stock trading, it offers mutual funds and a range of other financial products. Notable investors include Tiger Global, Peak XV Partners, and Ribbit Capital.
In October 2021, Groww raised Series E funding of $251 million at a valuation of $3 billion. This investment was led by Iconiq Capital along with other investors including Alkeon, Lone Pine Capital, and Steadfast. Groww’s existing investors too participated in this round, including Sequoia Capital India, Ribbit Capital, YC Continuity, Tiger Global and Propel Venture Partners.
Groww has emerged as a frontrunner in India’s competitive retail investing space. As of December, it had 13.2 million active users—well ahead of its nearest competitor, Zerodha, which had 8.1 million—according to data from the National Stock Exchange.
The platform is reportedly onboarding between 325,000 and 550,000 new users each month, outpacing its rivals by more than double.
