Groww Secures $150M from GIC Ahead of Confidential IPO Filing

Digital investment platform Groww is gearing up for its next big step. According to Money Control, Groww will be filing IPO papers confidentially in the next couple of weeks. Singapore’s wealth management firm GIC has invested $150 million in the company at a valuation of $7 billion.

This new capital is an important part of Groww’s funding round, which will enable the startup to enhance its technology infrastructure and services. The investment is also an indication of GIC’s ongoing commitment to India’s expanding fintech sector. This funding from GIC is part of the larger $250 to $300 million pre-IPO round and is expected to close in the next couple of weeks.

Groww to File IPO Confidentially

Groww is set to file IPO papers confidentially with the Indian market regulator SEBI. This confidential route allows startups to test investor interest and prepare Groww for a public listing without revealing too many details early on.

The IPO, likely to take place in the next fiscal year, is a crucial step for Indian fintech startups looking to go public due to increasing investor demand and a growing digital finance sector. The regulators’ approval is likely to take about 2 to 3 months. After that, Groww will file a revised DRHP, including its latest quarterly report, which will be made public.

Groww is India’s largest stock brokerage in terms of active users and has doubled its FY24 revenue to ₹3,145 crore on a consolidated basis. Its FY25 results are yet to be disclosed and will be part of the upcoming DRHP. The operating profit of the company for FY24 increased by 17% to ₹535 crore from ₹458 crore in FY23. For comparison, its consolidated revenue for FY23 stood at ₹1,435 crore.

However, a one-time domicile tax of ₹1,340 crore resulted in a net loss of ₹805 crore in FY24. This followed Groww’s decision to move its registered office from Delaware, US, to Bengaluru in the last year.

Expansion Plans Ahead of Listing

The newly raised funds from GIC are expected to support Groww’s expansion plans. The company wants to improve its product offerings, expand to new regions, and bring more users into the investing ecosystem.

Currently, Groww offers services such as mutual fund investments, stock trading, and fixed deposits. With rising competition in the Indian fintech space, the company plans to introduce more financial products, including insurance and pension services.

Sources suggest that the company is also investing in user education tools to help first-time investors understand financial markets better.

Strong Growth Drives Investor Confidence

Over the past few years, Groww has seen an increase in young investors in India. Its user-friendly interface, quick signup, and simple learning materials have made it a popular choice.

With the help of GIC in the funding round, Groww can reach more people in the market ahead of its public listing. The funds will also be used to ensure the company follows the regulatory compliances, update technology systems, and maybe start offering new types of services.

The decision of Groww to file an IPO confidentially marks a major milestone for the fintech firm. With the support of major investors like GIC and a strong product roadmap, Groww is gearing up for long-term growth.