Groww not constrained by competition; bets on wealth management, lending: cofounder Keshre
Groww is expanding into wealth management and lending while preparing for a ₹6,632 crore IPO. The company plans to raise ₹1,060 crore, focusing on cloud infrastructure and brand building. It aims for a valuation of $7.1 billion amid increased competition in the online broking sector.
MUMBAI : Groww, an online stock broking platform, is betting big on wealth management and lending, apart from its bread-and-butter broking business to be the cash cows in the face of heightened competition in the sector.
Lalit Keshre, cofounder and chief executive officer (CEO), said he’s confident of the growth areas that the company has identified over the next five to 10 years as it approaches a ₹6,632 crore initial public offering.
“From when we launched in 2016, so many mutual fund apps have come up—there are so many brokers out there. But what we have learned is that our growth is not constrained or not kind of blocked by what competition we have. I think growth is always blocked by not providing what customers want," Keshre said in an interview with Mint. “The broking side also looks promising. We are seeing good traction in our recently launched products including MTFs, commodities and bonds."
Groww plans to raise ₹1,060 crore as part of the IPO. While the company is well-capitalized, Groww plans to use the proceeds in areas such as cloud infrastructure, brand building and performance marketing. It will also invest in subsidiaries Groww Creditserv Technology Pvt Ltd, a non-banking financial company, and Groww Invest Tech Pvt Ltd, for funding its margin trading facility (MTF) business, Keshre said.
Groww said Thursday it has set its IPO price band at ₹95-100 per share with a face value of ₹2. The company has sought a valuation of $7.1 billion ( ₹62,000 crore) at the upper end of the band, making it one of the most prominent issues of the year. This reflects a slight uptick from the $7 billion valuation it got from its series F funding round led by Singapore’s sovereign wealth fund GIC in July.
IPO pricing
“So far, all the fundraisers that we have done were private rounds, where we dilute the company and figure out the valuation. But during an IPO, we let the market decide the value. Of course, they have their own processes. You get indications from multiple folks, and then you come up with a price," Keshre said, suggesting how institutional investors are increasingly pushing back companies on their IPO pricing.
Backed by investors including Peak XV, Y Combinator, Ribbit Capital, Tiger Global and Kauffman Fellows Fund, Groww reported total income of ₹4,056 crore and net profit of ₹1,824 crore in the financial year ended March 31, 2025.
“I think going public for a business like ours signals a lot more accountability, trust and responsibility into the system. This especially helps given that we have also entered newer segments like wealth, bonds and commodities in recent times," Keshre said.
Earlier this month, the company completed its acquisition of Bengaluru-based startup Fisdom to further strengthen its wealth management business, which Keshre expects to be a significant revenue contributor. Groww acquired the mutual fund business of Indiabulls AMC for ₹175 crore in May 2023.
Keshre added that the aim is to build an overall platform that addresses all the needs of the customers. Groww will continue innovating and experimenting with its offerings.
The company relocated its parent entity, Groww Inc, from Delaware in the US to Bengaluru, effectively making Groww's primary Indian company, Billionbrains Garage Ventures, the parent firm. The company started with the aim of making investing simpler, technology-led and accessible. Groww had 100 million cumulative downloads as of 30 June, as stated in the IPO documents.
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