Groww parent firm files IPO papers via confidential filing route; seeks to raise up to USD 1 bn

New Delhi: Billionbrains Garage Ventures, the parent company of stock broking firm Groww, has filed draft papers with Sebi for an initial public offering (IPO) through a confidential pre-filing route, with an aim to raise between USD 700 million and USD 1 billion, said industry sources familiar with the development.

The IPO is a combination of a fresh issue of equity shares and an offer for sale (OFS) component, they added.

In a public announcement on Monday, Billionbrains Garage Ventures said, "the company has filed the pre-filed draft red herring prospectus with Sebi and the stock exchanges...in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges".

The company, which is backed by marquee investors like Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion, people familiar with the development told PTI.

The investment platform could be valued at around USD 7 billion.

To manage the offering, Groww has appointed JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd.

Founded in 2016, Groww has quickly risen to become the fastest-growing retail broking platform in India in FY25, holding over 26 per cent market share as of March 2025.

During FY25, the platform added 34 lakh new accounts, with its active client base growing from 95 lakh in March 2024 to 1.29 crore in March 2025 -- a 36 per cent year-on-year increase. Its market share also expanded from 23.28 per cent to 26.26 per cent over the same period, according to data from the National Stock Exchange (NSE).

This impressive growth is largely attributed to Groww's mobile-first, user-friendly experience and its strong emphasis on investor education, which has resonated with retail investors across the country.

The platform has become a frontrunner in digitising retail investing in India, with its customer-centric approach enabling seamless access to financial markets and promoting an informed investing culture.

Groww turned profitable in FY23, posting a profit of Rs 449 crore and a revenue of Rs 1,277 crore. The momentum continued in FY24 with an operating profit of Rs 535 crore and a revenue of Rs 3,145 crore, indicating consistently strong business performance. However, the company reported a net loss of Rs 805 crore in FY24, primarily due to a one-time tax payment of Rs 1,340 crore related to its India domicile move.

Earlier this month, Singapore's sovereign wealth fund GIC sought fair trade regulator CCI's approval to acquire a 2.14 per cent stake in Billionbrains Garage Ventures.

Groww has opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

Earlier this month, commerce enablement platform Shiprocket filed IPO papers through the same route. In recent months, Tata Capital, edtech unicorn PhysicsWallah and Imagine Marketing, the parent company of wearables brand boAt, also chose confidential filings. In 2024, food delivery giant Swiggy and retail chain Vishal Mega Mart floated their IPOs following similar filings.

Online hotel aggregator OYO had used this route in 2023 but did not proceed with its IPO. Tata Play, formerly Tata Sky, was the first Indian company to utilise the confidential filing option in December 2022 and received Sebi's observation letter in April 2023, though it later withdrew from the public issue.

Market experts believe that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage.