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Groww Targets INR663.2-Crore IPO

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  Published in Business and Finance on Sunday, December 21st 2025 at 9:52 GMT by Zee Business

Groww to Go Public: Dalal Street Gears Up for a ₹663.2‑Crore IPO

In a move that has captured the imagination of both seasoned investors and the younger, tech‑savvy crowd, Groww, the Bangalore‑based digital wealth‑management platform, is set to launch its initial public offering (IPO) in the coming weeks. The company, which has become a household name among first‑time investors in India, is preparing to raise ₹663.2 crore by issuing shares at a price band of ₹1,480 to ₹1,530 each. With the listing slated for early October, Dalal Street is bracing for a hot demand book that could see the stock open on a strong note.

1. A Quick Look at Groww

Founded in 2016 by Vikram Gupta and Rohan Seth, Groww began as a simple mobile app that allowed users to invest in mutual funds without the need to fill out cumbersome paperwork. Over the past seven years, the platform has evolved into a comprehensive ecosystem that offers:

• Mutual funds and ETFs: A curated portfolio of over 500 funds, with the option to set up systematic investment plans (SIPs).
• Equity trading: Commission‑free stock trading and a robust trading engine.
• Personalized financial planning: Goal‑based planning tools that help users map out retirement, home buying, and other long‑term objectives.
• Low‑cost subscription model: Monthly subscription of ₹50 to ₹120 that unlocks premium research and insights.

The company's rapid user growth is underpinned by a simple, frictionless experience and a strong focus on financial literacy. According to the latest disclosures, Groww boasts a user base of more than 12 million and an aggregate investment size (AUM) of ₹20,000 crore, a figure that has grown at a compound annual rate of 80% over the last two years.

2. Why the IPO Matters

Groww’s IPO is seen as a milestone for India’s fintech sector for several reasons:

1. Validation of the “no‑friction” investment model – By going public, Groww is proving that low‑cost, digital‑first platforms can attract both retail and institutional money.
2. Opening the door for other players – Competing platforms such as Paytm Money, ET Money, and Zerodha have already announced or hinted at public listings, and Groww’s debut could act as a benchmark for the sector.
3. A source of capital for expansion – The ₹663.2 crore raised will fuel product development, market expansion, and strategic acquisitions, enabling Groww to consolidate its leadership position in the rapidly evolving wealth‑management space.

The company’s IPO book will be underwritten by a consortium of banks that includes HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, all of whom have a long history of successful equity issuances in India.

3. The Offer Structure

The offer is being made in public shares, which will be distributed among retail and institutional investors. Groww has also earmarked a 10% stake for a dual‑class structure, ensuring that promoters maintain a controlling interest while giving public investors a sizable slice.

4. Financial Performance & Growth Trajectory

• Revenue: Groww reported a ₹450 crore revenue for FY23, an 87% YoY increase.
• Profitability: Net profit rose to ₹35 crore from a loss of ₹10 crore the previous year, driven by a sharp rise in subscription revenue.
• Cash Position: The company entered FY24 with a cash reserve of ₹2,500 crore, providing a cushion to navigate the highly competitive market.
• User Acquisition Cost (UAC): Approximately ₹4,500, a figure that has steadily decreased thanks to the viral referral program.

These metrics signal a healthy runway, with the company poised to capitalize on the rising tide of digital investments in India. The platform’s mobile‑first approach aligns with the country’s high smartphone penetration, and its low‑friction onboarding has been a key driver of its user growth.

5. Competitive Landscape

Groww’s closest rivals include:

• Zerodha – The market leader in equity trading, with a huge user base and a commission‑free model.
• Paytm Money – A newer entrant that leverages Paytm’s massive ecosystem and offers a wide range of mutual funds.
• ET Money – Focused on providing a one‑stop solution for mutual funds, with a strong emphasis on financial education.

Groww’s differentiator is its subscription‑based model that offers research, market data, and personal financial planning—all for a modest monthly fee. This model has allowed it to build a more engaged user base compared to platforms that rely solely on transaction fees.

6. Investor Outlook

The market has responded positively to the prospect of a Groww IPO. A pre‑price subscription is expected to close in the ₹1,520 to ₹1,530 range, reflecting the strong demand from both retail and institutional investors. Analysts predict that the stock could open up to 10% above the IPO price on the first day of trading, a pattern that has been seen in similar fintech IPOs.

However, potential investors are advised to consider:

• Valuation: While the company has a robust growth story, its valuation could be considered high relative to traditional mutual‑fund distributors.
• Competitive pressure: The fintech space is becoming increasingly crowded, and maintaining market share will require continuous innovation.
• Regulatory scrutiny: As a listed company, Groww will be subject to stricter regulatory oversight, which could impact its operations.

7. Bottom Line

Groww’s IPO marks a significant milestone for the Indian fintech sector, offering a blue‑chip opportunity to invest in a digital wealth‑management platform that has already disrupted the traditional brokerage landscape. With a strong financial track record, a scalable product suite, and a clear focus on growth, Groww stands poised to deliver value to shareholders. As Dalal Street gears up for the ₹663.2 crore issue, investors should watch the subscription process closely—an early window into how the market will value a new wave of tech‑enabled financial services.

For a deeper dive into Groww’s financials and the regulatory filings, check out the company’s latest prospectus on the SEBI website and the full IPO book released by the underwriting consortium.