Billionbrains Garage Ventures (Groww)
- Billionbrains Garage Ventures is coming out with a 100% book building; initial public offering (IPO) of 66,88,08,998 shares of 2 each in a price band Rs 95-100 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on November 4, 2025 and will close on November 7, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 47.50 times of its face value on the lower side and 50.00 times on the higher side.
- Book running lead managers to the issue are Kotak Mahindra Capital Company, J.P. Morgan India, Citigroup Global Markets India, Axis Capital and Motilal Oswal Investment Advisors.
- Compliance Officer for the issue is Roshan Bhanuprakash Dave.
Profile of the company
Billionbrains Garage Ventures (Groww) is a direct-to-customer digital investment platform that provides wealth creation opportunities to customers through multiple financial products and services. It is India’s largest and fastest growing investment platform by active users on NSE as of June 30, 2025. With Groww, customers can invest and trade in stocks (including via IPOs), derivatives, bonds, mutual funds (including Groww Mutual Fund) and other products. They can also avail margin trading facility and personal loans. Using the Groww app or website, customers can access tools, information and market insights across its products and services and build their investment and trading strategies. It provides customers a friendly design and deploy an in-house technology platform to enhance the investing experience.
It provides multiple avenues for its customers to invest and cater to various needs of its customers. It does not push and instead rely on “pull-based” strategy to generate demand for new products and services as customers go through their investing journey on its platform. It uses design as a tool to make customer experience seamless and leverage technology to customize its platform to cater to different types of customers and their requirements. It categorizes its products into: (i) Broking services which includes Stocks and Derivatives; and (ii) Others which includes Mutual Funds, MTF, Credit and Groww AMC.
Its customers are individuals seeking to build financial assets by investing in capital markets. It has a diverse customer base belonging to various socio-economic backgrounds, across cities, towns and villages in India, in 98.36% of pin-codes as of June 30, 2025. Furthermore, based on the KYC information, its customers are young, come from diverse backgrounds and from across India. It classifies its customers based on their total assets invested with it or tracked on its platform. Customers with total assets (i.e., assets invested through Groww and other investments that they track on Groww) of less than Rs 2.5 million are classified as “Aspirational Users”, while customers with total assets of Rs 2.5 million or more, at any point in time on its platform, are classified as Affluent Users.
Proceed is being used for:
- Expenditure towards cloud infrastructure
- Brand building and performance marketing activities
- Investment in one of its Material Subsidiaries, Groww Creditserv Technology Private Limited (GCS), a non-banking financial company (NBFC), for augmenting its capital base
- Investment in one of its Material Subsidiaries, Groww Invest Tech Private Limited (GIT), for funding its margin trading facility (MTF) business
- Funding inorganic growth through unidentified acquisitions and general corporate purposes
Industry Overview
India’s equity market (across exchanges) reached a market capitalization of Rs 462 Trillion as of June 30, 2025, solidifying its position as the fourth largest market globally after the US, China (including Hong Kong), and Japan, growing at a CAGR of 17% over the last two decades. NSE is the third largest exchange globally by equity market trading volume as of March 2025. Average Daily Turnover (ADTO) (Average value of securities traded on the exchange each day, indicating the liquidity and activity level of the market over a specific period) for the cash market segment stood at Rs 955 billion for Q4FY2025, leading to a share of 17.3% in global equity cash market trades for Q4FY2025. With fresh issuance (Initial Public Offerings (IPO) and Follow-on Public Offers (FPO)) as a percentage of market capitalization in India is at less than 0.5% in FY2025, India has room to see more equity supply which could add to India's market capitalization over the next several years.
The stock broking industry in India is undergoing rapid growth, driven by technological advancements, increased retail participation, and favorable policy initiatives. With the rise of discount brokers and the entry of fintech players, competition in the industry has intensified, leading to more affordable and accessible services for retail investors. The future of the industry looks bright, with technological disruption, the rise of younger investors, and an increasing focus on sustainability driving further evolution. The innovation and adaption of technology in products and services is likely to continue to in the coming time, which will provide a superior customer experience, strengthen business processes of the industry and help to deeper market penetration. With the increasing integration of artificial intelligence (AI), machine learning (ML), and blockchain, the stock broking industry is likely to experience substantial efficiency gains. AI-powered trading algorithms are expected to gain popularity for executing high-frequency trades, while blockchain could improve transparency and security in financial transactions. Moreover, tools like chatbots and voice-based trading systems are becoming more prevalent, allowing users to conduct trades and access information via voice commands or instant messaging platforms.
The growing penetration of internet and smartphone will also help the industry to expand its customer base. The growing participation of millennials and Gen Z in stock markets is reshaping the way stockbrokers operate. Younger investors are more inclined to use mobile trading apps, demand lower brokerage fees, and seek educational resources on investing. As this demographic continues to grow, brokers will need to offer more personalized services, simplified interfaces, and easy-to-use platforms to cater to this audience. The growth of the industry will be supported by favourable liquidity in both domestic and international markets and better-than-expected corporate earnings. Client addition for the broking firms is likely to remain well, amid increased interest among various investor groups along with attraction towards flat brokerage plans.
Pros and strengths
Groww is a well-known and preferred brand for investing: Groww has been at the forefront of retail investing in India, and, as per Google Trends, Groww has the highest search interest in India among top 10 brokers, basis NSE active clients (as per NSE data) in Fiscal 2025. This is indicative of the trust that Groww has developed, the popularity of its app, and customer affinity towards its platform. Amongst the top 5 brokers (by NSE active customers as of June 30, 2025), it garnered the highest share of new app downloads, at 38.18%, from the start of Fiscal 2022 until June 30, 2025. Its brand recall is also demonstrated by its organic customer acquisition. For example, in the three months ended June 30, 2025 and 2024, Fiscals 2025, 2024 and 2023, 83.16%, 82.96%, 83.63%, 81.10% and 81.03% customers, respectively, were acquired organically. This ensures the cost of customer acquisition is low for its platform
High customer retention, engagement and price in-elasticity: At Groww, its relationship with its customers does not end with the completion of a transaction. The extent to which its customers use and engage with its products and services is an important indicator of their level of interest in its platform. Having engaged customers allows it to develop long-term relationships and introduce them to new products and services over time. It also increases customer engagement on the platform by providing relevant and easily accessible information (through news releases, earnings announcements among others, which creates a regular cadence of content and information) to cater to customers’ needs and interest and to enable them to make informed investment decisions. It uses its platform, from personalized notifications - to - stories - to - feeds - to - widgets, to provide customized updates. This engenders trust and creates enduring relationships with its customers.
Customer-friendly design for enhancing investing experience: Through creative and uniform design, it offers customers an easy to use app and website. By leveraging technology, it is able to design its platform to cater to different types of customers and their requirements in a single app, and provide transparency, simplicity and speed. For example, it provides advanced features and tools for power traders (persons that typically trade regularly in the capital markets) while its SIP investment process is designed for investors that are beginning their investment journey. From Fiscal 2023 through the three months ended June 30, 2025, “User Friendliness” was the most appreciated feature of the Groww app on Google Play 4 reviews, based on data aggregated by Appbot. It is also guided by its design ethos to focus on “user delight”, to “obsess over design”, to “sweat over the small stuff”, and to “not be generic”.
In-house technology stacks to deliver a differentiated experience at low cost: The company has built most of its technology in-house. Doing so helps it to deliver a better experience to its customers. With systems and infrastructure customized as a backbone for its operations, it is able to react to changes quickly, both customer-demand related and regulatory and compliance driven. This helps it to sustain product velocity, continuous innovation, and the reliability and stability of the platform, while maintaining business continuity. It invests in technology to maintain a low-latency and high-throughput data processing system, and can effectively manage the customers’ journey on its platform. Its systems have the bandwidth to handle around 50 million users simultaneously and execute around 50 million orders per day. Additionally, its peak transactions per second (TPS) were at par with the average TPS of UPI transactions as reported by NPCI in India during Fiscal 2024.
Risks and concerns
Maximum revenue comes from Broking Services: The company has derived a significant portion of its revenue from its Broking Services. It garnered 84.50% and 79.49% of its revenue from operations from its Broking services in Fiscal 2025 and in the three months ended June 30, 2025, respectively. Any downturn in customers’ willingness to use its Broking services could have an adverse impact on its business, financial condition and cash flows.
Exposed to working capital risks: The company’s business model involves managing a high volume of customer transactions, including trading and settlement activities, which require it to maintain sufficient working capital. Its model involves a time lag between when a customer initiates a fund transfers and when those funds are fully settled through netting and clearing mechanisms. During this interval, customers may execute multiple trades, increase its intraday exposure and thereby heighten working capital requirements. These risks are particularly pronounced during periods of elevated trading activity, such as market volatility or spikes in customer order volumes, when it may also face increased margin requirements imposed by clearing corporations or exchanges.
Negative cash flows from operations: The company had negative cash flows from operations in the three months ended June 30, 2025 and in Fiscal 2025, and may continue to do so in the near term as it expands its business and enhance its products and services. Failure to generate sufficient cash from operations could adversely affect its liquidity and its ability to fund its operations.
Stiff competition: The company operates in the investment and wealth management industry which is intensely competitive and highly regulated. India’s investment and wealth management market includes three key types of players, digital-first platforms, bank-led or bank-owned brokers and wealth management players. Accordingly, the company faces significant competition not only from a wide range of established players but also a host of new entrants. The company is able to compete on the basis of a number of factors which differentiate it from its competitors, including its technology platform, value proposition, execution, depth of product and service offerings, innovation, reputation and price. If the company is unable to effectively compete with existing or new market participants, its business, financial condition, cash flows, and results of operations may be materially adversely affected.
Outlook
Groww provides retail investors direct-to-customer digital investment platform that provides wealth creation opportunities to customers through multiple financial products and services. It is a well-known and preferred brand for investing across cities, towns and villages in India. It has In-house technology stack to deliver a differentiated experience at low cost. On the concern side, the company derived maximum revenue from operations from its Broking services and any downturn in customers’ willingness to use its Broking services could have an adverse impact on its business, financial condition and cash flows. Moreover, the company’s success depends on its ability to acquire and retain customers on its platform. Any failure to do so could have an adverse impact on its operations, financial condition and results of operations.
The issue has been offering 66,88,08,998 shares in a price band of Rs 95-100 per equity share. The aggregate size of the offer is around Rs 6353.69 crore to Rs 6688.09 crore based on lower and upper price band respectively. Minimum application is to be made for 150 shares and in multiples thereon, thereafter. On performance front, the company’s total income increased by 45.27% to Rs 40,616.45 million in Fiscal 2025 from Rs 27,959.90 million in Fiscal 2024, primarily due to an increase in its revenue from operations by 49.53% to Rs 39,017.23 million in Fiscal 2025 from Rs 26,092.81 million in Fiscal 2024. Moreover, the company’s profit in Fiscal 2025 was Rs 18,243.73 million compared with a loss of Rs 8,054.50 million in Fiscal 2024.
The company strives to continue to grow its market share and make Groww an all-India “pull” brand, indicating household appeal and recall. It will continue to build its brand through marketing campaigns focused on trust, transparency, financial inclusivity, and empowerment. This will help it to grow its customer base, which in turn will drive word-of-mouth marketing and scale revenue without proportionately increasing its marketing spend, thereby yielding operating leverage for its business. It will also help it to increase its market share across products and services, build deeper relationships with customers, and increase multi-product adoption. As its customer base grows, it intends to create distinct products to cater to different customer segments.
