Fintech major Groww held talks with a clutch of investment bankers for a potential initial public offering (IPO), likely be at a valuation of $6-8 billion, according to sources.
The sources added that the company is gearing up to file for anIPO in the next 10-12 months, people in the know said.
The firm is expected to raise around $700 million through its IPO, they added.
Recently, the Bengaluru-based firm flipped back its parent entity from US to facilitate listing in India. Groww paid ₹1,340 crore ($160 million) in taxes calculated on this newly arrived fair market value (FMV), a cut of more than 30 per cent on the $3 billion it was valued during its last funding in 2021.
Subscription fees and commissions
Groww’s revenue from operations surged to ₹3,145 crore in FY24, up from ₹1,435 crore in FY23. The largest sources of revenue were subscription fees and commissions, while income from its tech platforms and support charges contributed to other segments of its operating revenue.
Groww reported a net loss of ₹805 crore in FY24, largely due to a one-time tax payment of ₹1,340 crore for relocating its domicile to India. Despite this, the company remained operationally profitable, with profits of ₹535 crore in FY24 compared to ₹458 crore in FY23.
Surpassed rival
Groww surpassed its rival Zerodha last year in terms of number of active investors. Groww added more than 50 lakh users till November 2024, more than double the number it had signed up last year. It has widened the lead over closest rivals Zerodha and Angel One over the last year.