Groww’s IPO is one of the most anticipated public listings in India’s fintech space. If you’re wondering whether to apply or skip this opportunity, this detailed analysis will help you make an informed decision.
What is Groww?
Groww, operated by Billionbrains Garage Ventures Ltd., is India’s fastest-growing investment platform with over 4 crore registered users. The company has transformed how Indians invest by making mutual funds, stocks, and derivatives accessible through a simple, tech-driven app.
Groww IPO: Details at a Glance
The IPO opens for subscription from November 4 to November 7, 2025. Here are the key details you need to know:
- Total Issue Size: ₹6,632 crore
- Price Range: ₹95 to ₹100 per share
- Minimum Investment: ₹15,000 (150 shares per lot)
- Expected Listing Date: November 12, 2025
The IPO consists of a fresh issue worth ₹1,060 crore and an offer for sale of ₹5,572.3 crore from existing shareholders.
Financial Performance
Groww has shown impressive financial growth in recent years:
- Revenue (FY25): ₹3,901 crore (49% growth year-on-year)
- Profit After Tax (FY25): ₹1,824 crore
- EBITDA Margin: Around 60%
The company turned profitable in FY25 after earlier losses. Most notably, 78% of new users joined organically, showing strong brand trust and customer loyalty.
Why Groww Stands Out
- Market Leadership: Groww is the largest digital investment platform in India by active users as of June 2025, with 12.6 million active users on NSE accounting for 26.3% of the retail investor market.
- Already Profitable: Unlike many fintech startups that burn cash, Groww is generating healthy profits with strong contribution margins of 85%.
- Technology-First Approach: The platform’s minimal design and user-friendly interface have made investing accessible to millions of first-time investors.
- Strong Backing: Groww is backed by top investors like Tiger Global and Sequoia Capital. The company achieved unicorn status in 2021.
Risks You Should Know
- High Valuation: The IPO is priced at 30 times FY25 earnings, which experts consider expensive compared to traditional brokers.
- Revenue Concentration: Over 80% of revenue comes from brokerage fees. This makes Groww heavily dependent on trading volumes and market sentiment.
- Regulatory Concerns: A large portion of revenue comes from futures and options trading. Any regulatory tightening in this area could impact earnings significantly.
- Rising Competition: The digital investing space is getting crowded with deep discount brokers and established players fighting for market share.
What Experts Are Saying
Most analysts recommend subscribing to the IPO for the long term. They cite strong financials, market leadership, and the growing trend of digital investing in India. The grey market premium stands at 14-17%, suggesting positive listing expectations. However, actual listing gains will depend on overall market conditions and subscription demand. On Day 1 of the IPO, retail subscription has been strong with the retail quota nearly fully booked by mid-morning.
Who Should Apply?
You should consider applying if:
- You believe in the long-term growth of India’s digital investment sector
- You’re comfortable holding stocks for 2-3 years or more
- You have a moderate to high risk appetite
- You want exposure to the fintech revolution in India
You should avoid if:
- You’re looking for quick short-term gains
- You’re uncomfortable with high valuations
- You prefer conservative, dividend-paying stocks
- You have low risk tolerance
Final Verdict
Groww IPO offers a solid opportunity for investors who believe in India’s digital investing future. The company has proven profitability, strong user growth, and market leadership.
However, the premium valuation and revenue concentration mean this isn’t a risk-free bet. If you’re a long-term investor comfortable with moderate risk, this IPO deserves your attention.
For conservative investors, waiting for post-listing price stabilization might be a better strategy.
Learn More:
- How to Start Investing in Mutual Funds in India – Step-by-Step Process for Beginners
- Difference Between Mutual Funds and Stocks – Which is Better for Beginners?
- Understanding NAV (Net Asset Value) in Mutual Funds – What It Means and Why It Matters
- Risks Involved in Mutual Fund Investments – Common Risks and How to Manage Them
Disclaimer: This article is for educational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions. IPO investments carry market risks, and past performance does not guarantee future results.
