Groww, one of India’s most successful and profitable newage fintech startups, has taken its biggest leap yet by confidentially filing for an Initial Public Offering. While the move has been kept under wraps, it has triggered major curiosity across the startup and investor ecosystem.
This IPO will make Groww the first investment tech startup in India to go public, setting the stage for what could become a landmark moment in the country’s financial services industry.
From Mutual Funds to Market Leader
Founded in 2016, Groww began as a simple platform to help users invest in mutual funds. During the pandemic, the brand witnessed exponential growth as more Indians turned to digital investing. The startup quickly evolved by adding stock trading, followed by services in ETFs, futures and options, and even IPO investing.
Over the years, Groww also ventured into the asset management space by acquiring Indiabulls Mutual Fund, allowing it to operate as a registered AMC. Another major milestone was the launch of its wealth management arm, W by Groww, catering to highnetworth individuals and family offices.
Groww’s revenue surged to ₹3,145 crore in FY24 from ₹1,435 crore the previous year. Its EBITDA stood at ₹535 crore, reflecting strong business fundamentals. The company boasts more than 1.5 crore users across 900 cities and now claims the top spot in active investor count, overtaking even Zerodha.
Despite strong financials, Groww is expected to face a temporary loss in FY25 due to a ₹1,300 crore tax payment following its redomicile to India.
Why Confidential?
Groww’s decision to go the confidential filing route has sparked debate. Experts suggest the company is strategically waiting for the right moment to publicly reveal its numbers. Confidential filing allows the company more flexibility in timing its listing and managing investor perception.
The market has seen other startups like Shiprocket and PhysicsWallah choose this route, avoiding early public scrutiny that might disrupt operations or strategic plans.
Founders and investors argue that this process gives companies time to align internal strategies and messaging. It also helps avoid premature comparisons with other industry players like Zerodha, Angel One, or Paytm Money, all of whom are competing for investor attention.
New Bets on Insurance and Lending
Groww is not just resting on its mutual fund and stock trading legacy. The company is making a strong push into the insurance sector. As per insiders, insurance fits well into Groww’s existing playbook, especially since the company already focuses heavily on educating users and fighting misinformation.
Additionally, Groww is expanding its footprint in personal loans and loans against mutual funds. This is a strategic move aimed at enabling retail users to access credit in a responsible and investmentfriendly way.
What Lies Ahead
Groww is reportedly aiming to raise around $700 million at a valuation between $6 billion and $8 billion. The listing is likely to happen in 2026. But the big question remains can Groww deliver when it finally steps into the public market?
The mood among retail investors is mixed. Many feel that IPOs by newage tech startups often end up benefiting venture capital firms and early investors more than retail shareholders. Past disappointments like Paytm, Ola Electric, and even Swiggy’s underwhelming listing have left investors wary.
On the other hand, companies like Zomato, Zaggle, and Awfis have delivered value postlisting, proving that longterm returns are still possible with the right fundamentals.
Why Groww’s IPO Matters
Groww is not just another tech company. It has spent years building trust and educating firsttime investors about stocks, mutual funds, and financial planning. It has grown through simplicity, transparency, and userfriendly design. That brand goodwill might help the company stand apart from others when it finally lists.
But it must also face the same questions every IPObound company does can it continue to grow, diversify, and remain profitable while serving the evolving needs of Indian investors?
One thing is clear. Groww’s IPO will not go unnoticed. And when it finally happens, all eyes will be on whether India’s most trusted investment app can win over public markets the same way it did with its app users.
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