Groww, a Bengaluru-based online investment platform, has received approval from the Securities and Exchange Board of India to proceed with an initial public offering, according to sources.

The IPO is estimated to be in the range of US$800 million to US$1 billion.

Groww filed its draft prospectus under its registered entity, Billionbrains Garage Ventures Ltd. on May 26, 2025.

The equity shares, with a face value of 2 rupees (US$0.012) each, will be listed on both the NSE and BSE.

This listing would make Groww one of the first fintech firms to go public in India after a reverse flip of its parent entity from the US to India, a process that reportedly cost the company US$160 million in US taxes.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Strong profitability metrics position fintech IPOs for success in challenging markets

Groww’s dramatic financial turnaround demonstrates how profitability has become essential for fintech public offerings.

The company reported a threefold jump in net profit to Rs 1,819 crore and 31% revenue growth to Rs 4,056 crore for FY251.

This contrasts sharply with many earlier fintech IPOs that went public while still losing money, showing how market expectations have shifted toward sustainable business models.

The strong unit economics likely helped Groww secure regulatory approval despite broader concerns about fintech governance that have emerged across the industry in recent years.

Companies with proven profitability can better navigate the scrutiny of public markets and regulatory requirements that come with IPO processes.

2️⃣ IPO timing reflects fintech funding winter as private markets tighten

Groww’s move to public markets comes as India’s fintech sector experiences a significant funding decline, with investments dropping 26% to $889 million in the first half of 20252.

This represents a sharp decrease from $1.2 billion raised in the second half of 2024, indicating that private investors have become more selective2.

Recent Groww developments