Groww Files Confidential Draft with SEBI for IPO Plans
Stock broking platform Groww has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) under the confidential filing route. This development was confirmed through public notices published in newspapers on May 25.
The confidential pre-filing mechanism, introduced by SEBI in 2022, enables companies to submit DRHPs privately. The document remains confidential until the firm decides to go public, allowing greater flexibility in planning an initial public offering (IPO).
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Groww currently leads the Indian stockbroking space, with over 13 million monthly active users, according to data from the National Stock Exchange (NSE). As of February 2024, the platform held a 26.57 percent market share, ahead of Zerodha at 16.25 percent and Angel One at 15.62 percent.
The company has attracted backing from major investors, including Peak XV Partners, Tiger Global, Ribbit Capital, and Y Combinator’s Continuity Fund. So far, Groww has raised approximately 400 million dollars. Its last major funding round was a Series E worth 251 million dollars in October 2021, which valued the company at 3 billion dollars.
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Looking ahead, Groww is planning to raise 200 million dollars in a pre-IPO round. The company is targeting a valuation in the range of 6.5 to 7 billion dollars. As part of this effort, Viggo Investments Pte Ltd has approached the Competition Commission of India (CCI) seeking approval to acquire a 2.143 percent stake in the firm.
Financially, Groww reported revenue from operations of Rs 3,145 crore in the financial year 2023–24. However, the company posted a net loss of Rs 805 crore, primarily due to a one-time tax expense of Rs 1,340 crore related to its redomicile to India.
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A growing number of Indian startups have been adopting the confidential filing route to gear up for IPOs. Other companies that have taken this approach include CarTrade, Delhivery, Shiprocket, and boAt.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
