Groww, India’s biggest trading app, seeks $7B value in IPO

Groww, India’s largest retail stockbroker, is positioning itself to file an IPO in 10-12 months and is seeking a valuation between $6 billion and $8 billion, sources familiar with the matter told TechCrunch, in what would be a landmark listing for the country’s fintech sector.

The Bengaluru-headquartered listing will be the first IPO of a digital-edge trading platform in India. The target valuation, which sources warned could change, is higher than that Double the value of $3 billion From the last funding round in October 2021.

Groww, which counts Peak XV, Tiger Global and Alkeon among its backers, has started discussions with investment banks and will soon select advisers for the IPO, sources said. The startup, which enables customers to invest in mutual funds and make UPI transactions, Shifted his residence to India As part of its IPO preparations last year from the United States.

The startup declined to comment.

The trading app operator is ahead of competitors in India’s crowded retail investment market. It had 13.2 million active users in December, compared with 8.1 million for nearest rival Zerodha, according to data from the National Stock Exchange. Groww is adding 325,000 to 550,000 new users monthly, more than double that of competitors.

India has Global technology has emerged as a bright spot for listingsSeven tech startups will go public in 2024 as part of a total of 13 startup listings. Food delivery platform Swiggy’s $1.35 billion listing was last year’s largest global tech IPO.

More than 20 Indian startups are planning IPOs in 2025, including business-to-business marketplace Zetwerk, managed workspace provider Table Space, Prosus-owned PayU and pharmaceutical platform PharmEasy, TechCrunch previously reported.

JPMorgan’s India head of equity capital markets told TechCrunch in a recent interview that India’s growing domestic capital and policy consistency are among the reasons for the country’s IPO boom.

India’s market capitalization has doubled since 2019 to $5.3 trillion, with daily trading volume reaching $15 billion.

“No other country in the world gives you so much political certainty and policy consistency,” JPMorgan’s Abhinav Bharti told TechCrunch. “You can argue against a policy decision, but you can’t argue against the fact that they were consistent.”