Groww plans IPO with valuation target of up to $8 billion

If successful, this would mark the first public listing by a digital trading platform in India. The estimated valuation represents a significant increase from the USD 3 billion the company was valued at during its last funding round in October 2021. 

The Bengaluru-based firm, backed by investors such as Peak XV, Tiger Global, and Alkeon, is in discussions with investment banks and is expected to select advisors for the IPO soon, according to the sources. As part of its preparation, Groww moved its domicile from the US to India last year. The company, which provides services such as mutual fund investments and UPI-based transactions, declined to comment on the IPO plans.

Competition and market trends

Data from the National Stock Exchange cited by TechCrunch indicates that Groww had 13.2 million active users in December, significantly higher than Zerodha’s 8.1 million. According to the same source, Groww is reportedly gaining between 325,000 and 550,000 new users each month. 

India’s tech sector has seen a surge in public listings, with seven technology companies going public in 2024. Among these, Swiggy’s USD 1.35 billion IPO was the largest tech listing globally last year. Looking ahead, more than 20 Indian startups are expected to pursue IPOs in 2025. Notable names include Zetwerk, Table Space, Prosus-owned PayU, and PharmEasy. 

It’s worth noting that JPMorgan’s head of equity capital markets for India, recently attributed this trend to the country’s growing domestic capital and consistent policy framework. Specifically, he noted in an interview that the political certainty and policy continuity in India are unparalleled. While policy decisions may invite debate, their consistency has been a key driver of confidence, he added. 

TechCrunch further reports that India’s market capitalisation has seen substantial growth, doubling to USD 5.3 trillion in 2024 compared to 2019, with daily trading volumes tripling to USD 15 billion over the same period.