IPO-Bound Groww Closes $200-Million Fundraise At $7-Billion Valuation
A growing top line has been observed consistently across the broking industry as more retail investors take to the country's capital markets.
IPO-bound Groww's parent company saw its top line grow by around 30% in fiscal 2025 while making a profit of Rs 1,819 crore, people aware of the matter told NDTV Profit.
Billionbrains Garage Ventures, the parent of the financial services platform, reported a profit after tax after a loss in the previous year which came on the back of a one-time tax expense of Rs 1,340 crore.
The tax expense was paid for reverse-flipping the company's domicile to India from the US, which was completed in March 2024.
The financials for fiscal 2025 have not been audited yet and are part of the valuation report that Groww is expected to file with the Registrar of Companies as a regulatory requisite for closing its fundraising.
The fundraising in question is a Series F round, where the company raised $200 million at a valuation of $7 billion. The round saw participation from new investor GIC and existing investor Iconiq Capital, the above-mentioned people added on the condition of anonymity. Both the investors have picked up 1.4% stake for $100 million each.
Moneycontrol was the first to report on Groww's financials for fiscal 2025. NDTV Profit has reached out to Groww for comments on the story.
Groww counts the likes of Zerodha and Angel One Ltd. among its industry rivals. A growing top line has been observed consistently across the broking industry as more retail investors take to the country's capital markets, with Angel One's total revenue from operations coming up to Rs 5,238 crore for the fiscal 2025 — a year-on-year increase of 23%.
The fintech major also signed a definitive agreement last month to acquire wealth management company Fisdom for approximately $150 million, or around Rs 1,280 crore, in an all-cash deal, which marked its foray into the wealth advisory space.
In the same month, the company filed draft papers for its initial public offering through the confidential route. The firm plans to raise up to $1 billion through an initial public offering that will include a mix of fresh issue and offer for sale, according to people familiar with the matter.
The Bengaluru-based investment platform might see early investors like Tiger Global and Peak XV Partners selling stake as part of their holdings through the offer for sale, another person had told NDTV Profit earlier.
The company's early backers also include Ribbit Capital, YC Continuity and Propel Venture Partners.
Bankers involved in the deal anticipate high demand for the IPO and are trying to bring in more supply of shares. This may end up changing the offer structure.
On May 28, the company announced that the face value of Billionbrains' equity shares and class A equity shares was subdivided from Rs 10 each to Rs 2 each.
This meant that 36.6 crore shares of Rs 10 face value were split into 182.8 crore shares of Rs 2 each, while 13,200 class A shares of Rs 10 each were sub-divided into 66,000 class A shares of Rs 2 each.
