Upstox IPO: Tiger Global-backed brokerage begins talks with bankers for $400 million issue

Upstox, one of India’s largest online trading platforms, has begun discussions with investment banks for a potential initial public offering, Bloomberg reported, citing people familiar with the matter. The Tiger Global Management-backed stock brokerage has held preliminary talks with bankers and is expected to appoint advisers soon, the people said.

The proposed offering could raise about $400 million and is expected to include a mix of fresh shares and a sale by existing investors, according to the report. However, the discussions are still at an early stage, and details including the size and timing of the IPO could change, the people said. A representative for Upstox did not respond to requests for comment.

If it goes ahead, Upstox’s IPO could become the second major listing by an Indian broking firm within a year. In November, Billionbrains Garage Ventures Ltd (Groww), the parent of online broking platform Groww and India’s largest stock broker, raised Rs 66.3 billion, or about $693 million, through an initial public offering. Groww is currently valued at about $12.8 billion.

Upstox ranked fifth among Indian brokerages by active clients as of July 31, with about 1.9 million users, according to data from the National Stock Exchange of India. The data showed Groww in the top position, followed by Zerodha, Angel One Ltd. and ICICI Securities Ltd.

According to Tracxn, Upstox has raised about $220 million across six funding rounds from investors including the late Tata Sons chairman Ratan Tata, Tiger Global and Stride Ventures. The company became a unicorn in 2021 after a funding round valued it at $3.5 billion, according to its website. Bloomberg reported that the company is now in early-stage talks on a possible public issue that could mark another significant listing in India’s online broking sector.