Digital investment platform Groww has filed a revised draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), paving the way for a Rs 7,000 crore initial public offering (IPO). The public issue will include a fresh issue of Rs 1,020 crore alongside a large offer-for-sale (OFS) of Rs 5,000 crore by existing investors and co-founders.
IPO Structure and Stakeholders
The OFS will see Peak XV divest 15.8 crore shares, while YC Holding and Ribbit Capital plan to offload 10.5 crore and 11.8 crore shares, respectively. Other participants include Tiger Global, Kauffman Fund, and co-founders Lalit Keshre, Harsh Jain, and Neeraj Singh. Peak XV remains Groww’s largest external stakeholder with a 21.73% stake, followed by YC Holding (12.05%) and Ribbit Capital. Co-founders Keshre, Jain, and Singh hold 9.13%, 6.72%, and 6.26%, respectively.
Use of Proceeds
Groww intends to deploy funds from the fresh issue to strengthen cloud infrastructure, expand brand presence, invest in subsidiaries and acquisitions, and meet general corporate purposes. The IPO will be managed by Kotak, JP Morgan, Citi, Axis Capital, and Motilal Oswal, with MUFG Intime as registrar.
Financial Performance
The platform reported a 50% year-on-year revenue jump to Rs 3,902 crore in FY25, up from Rs 2,609 crore in FY24. Profitability returned with a profit of Rs 1,824 crore, reversing the FY24 loss of Rs 805 crore. In Q1 FY26, Groww recorded Rs 904 crore revenue with a profit of Rs 378 crore, serving 18.07 million transacting users, including 14.38 million active clients.
Final Take
With strong revenue growth, a profitable track record, and a robust investor base, Groww’s IPO is set to be one of the most watched in India’s fintech space, signaling confidence in digital investment platforms among retail and institutional investors.
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