Groww backed by Satya Nadella to challenge Angel One: Will $8 bn IPO flip the market?

Billionbrains Garage Ventures Ltd., the parent company of investment platform Groww, is reportedly preparing to file for an initial public offering in Mumbai as early as next week. 

According to a Bloomberg report, Groww is aiming to raise between $650 million and $800 million at a valuation of up to $8 billion. If the valuation holds, the Satya Nadella-backed company would surpass Angel One Ltd., currently valued at about $2.3 billion, to become India’s most valuable brokerage.

The deal could become one of the biggest IPOs in India’s fintech space and a major moment for the country's booming digital investing sector.

The report added that the IPO size may shift if India’s markets regulator clears a proposal to lower the minimum public float for large companies. Current norms require at least 10%, but the proposed rule would allow listings with as little as 8% for firms valued between ₹500 billion and ₹1 trillion.

Groww has enlisted JPMorgan Chase & Co., Kotak Mahindra Bank Ltd., Citigroup Inc., Axis Bank Ltd., and Motilal Oswal Investment Advisors to advise the offering. None of the firms, nor Billionbrains Garage, responded to Bloomberg’s emailed requests for comment.

Founded as a mutual fund platform, Groww has grown into one of India’s largest retail brokerages. As of August, it had 12.07 million active clients on the NSE, representing 26% of the exchange’s retail base, according to the NSE’s website. BT could not independently verify the details.

Groww’s investors include Peak XV Partners, Ribbit Capital, and Tiger Global Management.