Author: Dev Patel | EQMint | IPO News
Mumbai, November 3, 2025 — Bengaluru-based wealth-tech unicorn Groww has witnessed a stellar response from institutional investors, with its anchor book oversubscribed more than 15 times, attracting bids worth nearly ₹50,000 crore. The anchor portion, pegged at around ₹3,000 crore, drew heavy interest from top domestic mutual funds and major global investors ahead of the company’s much-anticipated ₹6,632 crore initial public offering (IPO), which opens for subscription on November 4, 2025.
According to banking sources, marquee investors such as SBI Mutual Fund, Sequoia Capital, Dragoneer Investment Group, and Coatue Management participated in the anchor round, underscoring the strong appetite for one of India’s most profitable fintech startups.
The extraordinary demand highlights investor confidence in Groww’s business model, profitability, and long-term growth trajectory. It also marks one of the most successful anchor book subscriptions among Indian startups entering the public market in recent years.
Anchor Book Sees Exceptional Demand
Bankers familiar with the development said Groww’s anchor book, initially targeted at ₹3,000 crore, saw bids worth over ₹50,000 crore, representing an oversubscription of nearly 15 times.
Eight of India’s ten largest mutual funds participated, along with several high-profile U.S.-based funds. The mix of domestic and foreign institutional investors demonstrates that Groww has managed to position itself as both a homegrown success story and a globally relevant fintech player.
“The scale of interest is extraordinary. The strong participation from both Indian mutual funds and marquee global investors shows confidence in Groww’s profitability and future growth,” said a senior investment banker managing the deal.
This response follows the company’s announcement of its IPO price band of ₹95–₹100 per share, which values the startup at approximately ₹62,500 crore ($7.1 billion).
IPO Details: ₹6,632 Crore Issue at $7 Billion Valuation
The ₹6,632 crore IPO includes a fresh issue of shares worth ₹1,060 crore and an offer for sale (OFS) of ₹5,572 crore by existing shareholders, including major venture investors.
The offer opens for public subscription on November 4 and closes on November 7, 2025. The allotment of shares will be finalized by November 10, and the stock is expected to list on the BSE and NSE on November 12.
With this issue, Groww will join India’s growing list of listed fintech companies, following the footsteps of Paytm, Policybazaar, and CAMS. However, unlike most peers that went public while loss-making, Groww enters the market as a profitable fintech, a distinction that has boosted investor confidence.
Financial Performance: Profitable and Growing
For FY25, Groww reported revenue of ₹4,056 crore and net profit of ₹1,899 crore, reflecting a net margin of 44.85% — among the highest in India’s fintech industry.
During the June 2025 quarter, the company posted a net profit of ₹378.4 crore, up 11.9% year-on-year. Revenue for the same period stood at ₹904.4 crore, down slightly from ₹1,000.8 crore in the corresponding quarter last year.
Despite a marginal decline in top-line growth, Groww’s focus on operational efficiency and customer retention continues to deliver strong bottom-line results.
“Groww is a rare combination of profitability, scalability, and digital reach,” said an analyst tracking fintech listings. “Its consistent margins and retail investor loyalty differentiate it from most new-age companies.”
Investor Structure and Major Shareholders
Founded by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, Groww began in 2016 as an online mutual fund investment platform and has since expanded into stockbroking, fixed-income products, and smallcase-style portfolios.
The promoters collectively hold 28.04% of Groww, while public shareholders own 71.96%. Among institutional investors, Peak XV Partners (formerly Sequoia India) is the largest shareholder with 19.87% stake, followed by Ribbit Capital (14.78%), YC Holdings (13.24%), and Tiger Global’s Internet Fund VI (6.04%).
The IPO’s OFS component will see several investors, including Peak XV, YC Holdings, Ribbit, Internet Fund, Alkeon Capital, Propel Venture Partners, and Sequoia Capital Global, selling shares collectively worth ₹5,572 crore.
IPO Proceeds: Investing in Growth and Expansion
Groww plans to use the ₹1,060 crore raised from the fresh issue to strengthen its technology, infrastructure, and subsidiaries. The funds will be allocated as follows:
- ₹152.5 crore for expanding and upgrading cloud infrastructure.
- ₹225 crore for brand building and performance marketing.
- ₹205 crore for capital infusion into Groww Creditserv Technology, its non-banking finance subsidiary.
- ₹167.5 crore for the margin trading facility business of subsidiary Groww Invest Tech.
- The balance will be used for strategic acquisitions and general corporate purposes.
Industry observers note that the company’s clear, growth-oriented allocation plan is another reason for investor optimism.
“Groww has struck a fine balance between growth and profitability,” said a market analyst. “Its strategic use of proceeds — from tech enhancement to brand expansion — indicates long-term planning rather than short-term optics.”
Market Structure and Allocation
In line with SEBI’s IPO norms, Groww has reserved 75% of the shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
Retail investors can bid for a minimum of 150 shares and in multiples thereafter. The IPO’s price-to-earnings ratio (P/E) of 33.5x positions Groww as relatively well-valued compared to other fintech startups but higher than traditional brokerages.
Given its digital-first model and diversified revenue streams, analysts expect strong interest from both retail and institutional segments once the issue opens.
A Benchmark for India’s Fintech Listings
Groww’s IPO marks a defining moment for India’s fintech sector, particularly given its profitability and measured valuation approach. Unlike earlier fintech IPOs that faced market skepticism, Groww’s consistent financial performance has made it a “trust anchor” among digital investment platforms.
With over 7 million active users, Groww has become a household name for retail investors across Tier-1 and Tier-2 cities. Its user-friendly app, transparent pricing model, and robust compliance framework have helped it capture significant market share from older brokerage firms like Zerodha and Angel One.
Industry experts believe Groww’s successful listing could reignite confidence in India’s startup IPO pipeline, encouraging other profitable tech companies to consider public listings in 2026.
“This is a landmark IPO for Indian fintech,” said a venture capital executive. “If Groww performs well post-listing, it will restore faith in the startup IPO story — one built on sustainability, not speculation.”
Outlook: Setting the Stage for India’s Next Fintech Wave
As Groww prepares for its November 12 market debut, all eyes are on how investors will price the fintech leader in secondary markets. With a strong anchor book, high profitability, and disciplined capital deployment, analysts expect a steady listing premium and long-term investor interest.
The company’s journey from a small mutual fund aggregator to one of India’s top wealth management platforms epitomizes the potential of India’s digital finance revolution.
If its IPO success is any indication, Groww is not just growing in valuation — it’s growing in credibility, too.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
