Tiger Global-backed online stock broking platform Groww has filed updated draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of around Rs 7,000 crore.
The proposed IPO includes a fresh issue of equity shares worth Rs 1,060 crore. Additionally, there will be an offer for sale (OFS) of 57.4 crore shares, according to the updated draft red herring prospectus (UDRHP) filed on Tuesday (September 16, 2025).
A source aware of the matter told MediaNama that the OFS component is expected to be in the range of Rs 5,000 crore to Rs 6,000 crore.
Under the OFS, cofounders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal will each sell 10 lakh shares. They currently hold a cumulative 26.64% stake in Groww. Peak XV Partners, the company’s largest shareholder with a 19.8% stake, plans to divest 15.8 crore shares via the OFS, while Ribbit Capital will offload 11.7 crore shares through two of its funds. Besides, Y Combinator will sell 10.5 crore shares and Tiger Global will divest 6.4 crore shares.
Confidential Pre-Filing Route and IPO Timeline
Groww had earlier filed draft papers in May with SEBI for an IPO through a confidential pre-filing route and received the market regulator’s approval in August. Companies using this route are required to file an updated DRHP before filing the RHP.
The Bengaluru-headquartered company opted for the confidential pre-filing route, allowing it to withhold public disclosure of IPO details until later in the process.
The source cited above said that Groww is seeking a $8–9 billion valuation for its IPO. Earlier, the company was said to be eyeing a $7 billion valuation.
Groww declined to comment on its IPO plans.
While some media reports suggested that the company is targeting a November listing on the stock exchanges, MediaNama could not independently verify that claim.
Where Will the Money Go?
Groww said it will allocate Rs 152.5 crore from the fresh issue proceeds towards cloud infrastructure, while Rs 225 crore will be used for brand-building and marketing activities.
The investment tech company will invest Rs 205 crore in its Non-Banking Financial Company (NBFC) arm Groww Creditserv Technology Private Limited (GCS) to augment its capital base.
Additionally, Rs 167.5 crore will be infused into its subsidiary, Groww Invest Tech Private Limited (GIT), to fund its margin trading facility (MTF) business. The balance has been earmarked for funding inorganic growth through acquisitions and for general corporate purposes.
Groww’s Business Expansion and User Base
Founded in 2017 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww started its journey as a mutual fund investment platform but later expanded into stock trading, futures & options, IPOs, and other financial products.
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It also runs an asset management company and entered the wealth management space in July this year after…
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