Billionbrains Garage Ventures of Bengaluru, India, files confidential DRHP for Groww IPO, aiming to raise $700M-$1B for expansion and technology.
Billionbrains Garage Ventures, the parent company of Groww, one of India’s fastest-growing retail stockbroking platforms, has filed a draft red herring prospectus (DRHP) via the confidential pre-filing route with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The Bengaluru-headquartered company, founded by former Flipkart executives, plans to raise between $700 million to $1 billion through the IPO, according to sources cited by PTI.
Groww was launched in 2016 and has quickly become a leading investment platform in India, supported by marquee investors including Peak XV, Tiger Global, and Microsoft CEO Satya Nadella. The company intends to utilize the IPO proceeds for technology enhancement and business expansion.
The confidential filing method, increasingly favored by Indian firms, provides flexibility by allowing companies to delay public disclosure and extend the IPO timeline to 18 months from SEBI’s final observations. This approach also permits adjustments to the IPO size by up to 50% before the updated DRHP stage.
In FY24, Groww reported a net loss of ₹805 crore, primarily due to a one-time tax expense related to relocating its domicile from the US to India. Operationally, the company remained profitable, with operating profits rising 17% to ₹535 crore and revenues more than doubling to ₹3,145 crore.
Billionbrains Garage Ventures has appointed JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd to manage the IPO. The company plans to list on India’s National Stock Exchange and BSE Limited.
Earlier in May, Singapore’s sovereign wealth fund GIC sought approval to acquire a 2.14% stake in Billionbrains Garage Ventures, signaling strong institutional interest in Groww’s growth story.