Groww Set to Launch Multi-Billion-Dollar IPO, The First Major Indian Startup Listing Post-Relocation
Groww, India’s leading retail brokerage platform, is gearing up for a significant public market entry with a multi-billion-dollar IPO. This move marks a pivotal moment, just over a year after the Bangalore-based company shifted its corporate headquarters from Delaware back to India — potentially making it the first Indian startup to list domestically after relocating from the U.S.
Backed by high-profile investors such as Microsoft CEO Satya Nadella, Y Combinator, Ribbit Capital, and Tiger Global, Groww’s upcoming IPO, expected later this year, is also a lucrative exit opportunity for global venture funds. Notably, these investors are planning to sell approximately 236 million shares—around 5.6% of Groww’s total equity—per the draft IPO documents filed recently. They constitute the largest selling bloc, making up about 41% of all shares on offer to the public.
Recent Moves of Indian Startups Returning Home
Other Indian startups like Pine Labs, Razorpay, Meesho, and Zepto have also recently returned their headquarters to India. Walmart-backed PhonePe moved from Singapore to India in 2022, and Flipkart, also backed by Walmart, announced plans earlier this year to relocate from Singapore to India.
Groww’s headquarter relocation from the U.S. to India last year involved a tax payment of approximately $159 million, aligning with the shift to better adhere to local regulations and capitalize on the expanding domestic capital markets.
Why Relocate and List in India?
Relocating headquarters helps startups better navigate local regulations and meet listing requirements for Indian stock exchanges. Given India’s growing retail investor base and rising IPO appetite, listing domestically offers strategic advantages. The trend underscores India’s capital markets’ maturation, becoming more attractive than overseas options.
While foreign investors plan to offload a significant portion of their holdings, Groww’s founders—Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal—are selling only around 4 million shares, roughly 0.7% of the total offer. This indicates that the founders are retaining nearly all their equity, contrasting with the investors who are using the IPO as an exit.
Details of the IPO
Groww aims to raise ₹10.6 billion (about $121 million) through new shares, alongside secondary sales of 574 million shares by existing shareholders, valued at approximately ₹5–6 billion ($568–$682 million). The company's valuation is projected at around $9 billion.
Financial Performance
In the fiscal year ending March 31, Groww reported a total income of ₹40.6 billion ($462 million), up 45% from the previous year, with a profit after tax of ₹18.2 billion ($208 million). The previous year saw a net loss of about ₹8 billion ($92 million), mainly due to expenses related to the U.S. headquarters relocation.
Market Reach and User Base
As of June, Groww had approximately 37.4 million individual demat accounts, representing nearly 19% of India’s market, with 12.6 million active clients on the National Stock Exchange—about 26% market share. Its platform also hosts around 17 million active SIPs and 9 million mutual fund investors, making it the only investment app in India to surpass 100 million downloads.
Advisors and Contact
The IPO is being managed by JPMorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank, and Motilal Oswal Investment Advisors.
For more updates on Indian startups and tech developments, contact Jagmeet at mail@journalistjagmeet.com.