Hustler Words – Groww, India’s leading retail brokerage firm and a portfolio company of Microsoft CEO Satya Nadella, is poised to make history. The company is preparing for a multi-billion dollar Initial Public Offering (IPO), marking a significant milestone as potentially the first Indian startup to list domestically after relocating its headquarters from the U.S. to India. This strategic move, completed just over a year ago, underscores the growing maturity and attractiveness of India’s capital markets.
The IPO, expected later this year, presents a lucrative exit opportunity for global venture capital firms Y Combinator, Ribbit Capital, and Tiger Global. These investors are collectively offloading approximately 236 million shares—roughly 5.6% of Groww’s equity—representing the largest selling block at 41% of the total public offering, according to draft IPO documents filed recently on hustlerwords.com.
This trend of returning headquarters to India is gaining momentum. Several other prominent startups, including Pine Labs, Razorpay, Meesho, and Zepto, have recently made similar moves. Walmart-backed PhonePe and Flipkart have also relocated their headquarters from Singapore to India. Groww’s relocation, which involved a tax payment of approximately $159 million, highlights the strategic advantages of aligning with evolving Indian regulations and tapping into the expanding domestic investor base.
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Interestingly, Groww’s founders—Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal—are demonstrating remarkable confidence in the company’s future. They are selling only a minuscule 0.7% of the total shares offered, a stark contrast to the significant divestment by established investors.
Groww aims to raise approximately $121 million in fresh funding through the IPO, alongside the secondary sale of 574 million shares by existing shareholders. The IPO is projected to value the Bengaluru-based company at $9 billion. The company’s financial performance is equally impressive, reporting a 45% year-on-year increase in total income to approximately $462 million in the fiscal year ending March 31. After posting a net loss of roughly $92 million the previous year, primarily due to relocation expenses, Groww achieved a profit after tax of approximately $208 million.
Groww’s market dominance is undeniable. As of June, it boasted 37.4 million individual demat accounts (nearly 19% of the Indian market), 12.6 million active clients on the National Stock Exchange (26% market share), 17 million active systematic investment plans (SIPs), and 9 million unique mutual fund investors. The platform has also surpassed 100 million cumulative downloads, solidifying its position as a leading investment app in India.
JPMorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank, and Motilal Oswal Investment Advisors are advising on the offering. The Groww IPO is set to be a landmark event for the Indian startup ecosystem, signaling a new era of domestic growth and investment.
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