Groww prepares for India’s first digital trading IPO

For India’s tech initial public offering (IPO) scene, 2025 is shaping up to be a blockbuster year – and Groww, the country’s biggest retail stockbroker, is gearing up to lead the charge.

The Bengaluru-based startup is preparing to go public within the next 10-12 months, aiming for a valuation between $6 billion and $8 billion — more than double its last valuation of $3 billion in 2021. Sources say Groww is already in talks with investment banks and plans to raise about $700 million through its listing.

Also, the timing couldn’t be better. India’s capital markets are thriving, with seven tech IPOs in 2024 and more than 20 startups like Zetwerk, PayU, and PharmEasy expected to go public in 2025. Swiggy’s $1.35 billion IPO in 2024 was the largest tech listing globally, and investors are likely eagerly awaiting the next wave. Groww’s IPO would be the first by a digital trading platform in India — a milestone in the country’s fast-evolving fintech space.

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TechloyEmmanuel Oyedeji

But Groww isn’t just riding the trend; it aims to reshape the market. With 13.2 million active users as of December 2024, Groww has surpassed rivals Zerodha (8.1 million users) and Angel One (7.8 million users) to become India’s largest retail stockbroker. The platform is growing fast, adding between 325,000 and 550,000 new users each month — more than double the rate of its competitors.

It’s not just user growth that’s impressive, though. The company moved its holding entity from the U.S. to India last year, signaling confidence in local regulations. The relocation came with a hefty one-time tax bill of Rs 1,340 crore ($160 million), but it positions Groww well for a domestic listing.

Still, it won’t be a smooth ride. India’s Securities and Exchange Board (SEBI) recently tightened rules on Futures and Options (F&O) trading, which contributes about 50% of revenue for stockbrokers. The new regulations have already caused a 30% drop in F&O trading volumes, raising concerns about how firms like Groww will adapt.

As India’s market capitalization doubles to $5.3 trillion and daily trading volumes triple to $15 billion, Groww’s upcoming IPO will serve as a bellwether for whether digital-first finance companies can thrive in the public markets. For now, the company seems confident in its strategy — but whether it can meet its ambitious valuation remains to be seen.