Groww-parent Billionbrains Garage Ventures files updated DRHP with SEBI; check details

Billionbrains Garage Ventures, the parent company of Groww and widely recognised as India's most profitable startup, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO).

The company is set to raise Rs 1,060 crore through a fresh issue, while the offer for sale (OFS) component may range between Rs 5,000 crore and Rs 6,000 crore, bringing the potential total issue size up to approximately Rs 7,060 crore. Details on lot size, minimum investment, reservation for investor categories, and lead managers will be finalised in the coming weeks.

Groww's IPO plans were made public following SEBI’s nod, with the company having submitted a confidential draft red herring prospectus (DRHP) in May 2025. The Bengaluru-headquartered fintech will determine the final issue size and valuation after further deliberations. In the IPO, promoters will offer only 0.07% of the total shares, with founders' holding at 27.97% and a 20% lock-in for 1.5 years post-listing.
 

IPO Objectives
The IPO aims to fund new growth initiatives, expand offerings in wealth management, margin trading facility (MTF), commodities, and loans against shares, and provide an exit for some early investors via the OFS. The capital will support further product diversification and technology investments.
 

Company & Financial Information
Founded in 2016, Groww has rapidly emerged as a leading digital broking and investment platform in India. The company reported a net profit of Rs 1,824 crore in FY25 and Rs 378 crore in Q1 FY26, marking an 11% increase over the previous year’s first quarter. Groww achieved an industry-leading contribution margin of 85% and a net profit margin of 44% in FY25, driven by a direct-to-consumer model with over 80% organic customer acquisition and a 77% three-year retention rate.
 

Performance Metrics and Market Share
Groww’s performance has outpaced its peers, with a 35% increase in NSE active user base in FY25, compared to 24% for Angel One and 15% for Motilal Oswal. As of June 2025, Groww’s NSE active clients totalled 12.6 million, translating to a 26.27% market share. The firm contributed Rs 34,000 crore in SIP inflows during FY2025, accounting for 11.76% of industry SIP inflows, and held an 18.50% share in active SIPs and a 16% share in unique mutual fund investors for June 2025.
 

Product Portfolio and Growth Drivers
Since its inception, Groww has expanded from mutual fund distribution to stocks, and more recently to wealth management, commodities, and lending products. These offerings are expected to drive future growth and revenue diversification, positioning the company as a comprehensive wealth management solution for middle- and high-income Indians.

Competitive Landscape
Groww operates in a competitive market with players such as Angel One and Motilal Oswal. Despite regulatory challenges in the derivatives segment that affected industry profitability, Groww has led in market share gains and new client additions, securing 45.45% of the net addition in NSE active users between June 2024 and June 2025, and a 25.8% share in new demat account openings.
 

Promoter Holding and Lock-in
Groww’s founders currently hold 27.97% of the company's shares and are listed as promoters. They plan to sell just 0.07% of total shares in the IPO. The promoters' shares will be subject to a 20% lock-in for 1.5 years from listing, reflecting long-term commitment to the business.
 

Key Dates and Next Steps
The IPO open and close dates, allotment date, listing date, and other key milestones are yet to be announced, but are expected to be finalised soon. Investors should look for further announcements as the IPO process advances.