Online investment platform Groww is making moves toward a public listing as it confidentially filed IPO papers with SEBI under Regulation 59C(5). The company has taken the confidential route to receive regulatory feedback before formally filing its Draft Red Herring Prospectus (DRHP). This gives Groww flexibility while planning its public entry on Indian stock exchanges.
According to available details, Groww’s IPO could raise between $70 million to $100 million. The shares will have a face value of Rs. 2 each and will be listed on both NSE and BSE. The IPO application has been filed under Groww’s registered corporate name, Billionbrains Garage Ventures Pvt Ltd, headquartered in Bengaluru.
Confidential Filing: A Modern Approach by Tech Startups
Confidential IPO filings have become popular among tech companies looking to test the waters without too much public scrutiny. SEBI introduced this option for companies under Regulation 59C(5), offering startups a chance to gain regulatory suggestions before going public.
Even though Groww filed its papers, the public notice clarified that this doesn’t guarantee the IPO will happen. However, the company is preparing for a listing shortly.
GIC Set to Join Pre-IPO Funding Round
Ahead of its IPO, Singapore’s Sovereign Wealth Fund GIC has approached the Competition Commission of India (CCI) for approval to acquire a 2.14% stake in Groww. This stake is likely to be part of the company’s pre-IPO round.
Sources suggest that GIC may invest between $25 million to $30 million initially, and later scale up the total investment to $150 million. Existing investor Tiger Global is also expected to participate in this funding round, reaffirming confidence in Groww’s long-term plans.
Revenue and Losses in FY24
Groww, which started in 2016, has backing from well-known global investors like Tiger Global, Peak XV (formerly Sequoia India), Ribbit Capital, and Y Combinator. The startup has rapidly grown in the mutual fund and stock broking space.
In FY 2024, Groww reported Rs. 3,145 crore in operating revenue, a strong jump compared to earlier years. However, the company also recorded a net loss of Rs. 805 crore. The losses, as per company sources, were primarily due to a reverse-flipping tax adjustment, which occurred when Groww shifted its holding structure from the US to India.
What’s Next for Groww?
If SEBI and market conditions align, Groww may become one of the latest tech startups to go public in India. The IPO will not only help the company raise capital but also improve its visibility and credibility among Indian investors.
Sources: SEBI, Economic Times, Business Standard
Disclaimer: This article is for informational purposes only. Investing in IPOs involves risk. Please consult your financial advisor before making any investment decisions.
