Groww IPO Review: GMP, Share Price, Valuation, Peer Comparison & More

Billionbrains Garage Ventures Limited, also known as Groww, is India’s leading online platform for investing in stocks, mutual funds, and other financial products. If you have ever used an app to buy a SIP or trade a stock, chances are you’ve heard of it.

Now, Groww is coming out with its much-awaited IPO. The issue is open from November 4 to 7, 2025, priced at ₹95–₹100 per share, and aims to raise ₹6,632 crore. As per the grey market, its GMP is around ₹16.5 per share, an unofficial early indicator suggesting a listing gain of about 16.5%. But remember, GMPs change daily and are not reliable.

This blog will help you understand Groww’s business, why it’s raising money, the company’s strengths and risks, how it compares with rivals, and whether its valuation makes sense.

IPO Overview

• IPO Date: November 4 to November 7, 2025
• Total Issue Size: ₹6,632.3 crore
• Price Band: ₹95 to ₹100 per share
• Minimum Investment: ₹15,000
• Lot Size: 150 Shares
• Tentative Allotment Date: November 10, 2025
• Listing Date: November 12, 2025 (Tentative)
• GMP: The GMP for Groww’s IPO is ₹16.5, reflecting a 16.5% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Groww Makes Money

Groww’s business runs like a big digital supermarket for financial products. Everything is built around two ideas: attract lots of users and make them use more products over time.

Customer Attraction

Groww focuses on simplicity and trust, not fancy ads. Over 83% of its new users join organically, meaning they come through word-of-mouth, not ads. This keeps marketing costs low. Once customers come, they tend to stay; the 3-year retention rate is 77.7%, which is very high for internet businesses.

Products and Services

• Broking & Trading: Customers buy and sell stocks, and trade in futures and options. This segment makes up 79.5% of Groww’s income.
• Investing & Wealth: Users can invest in bonds, mutual funds, and new offerings from its asset management arm.
• Loans: Through its NBFC (non-banking finance company), Groww gives personal loans and margin loans (short-term loans for trading).

Revenue Model

Most of Groww’s money comes from brokerage fees (small fees per trade) and interest income from lending activities. Since most of its systems are automated, its operations are cheap to run. Its Contribution Margin is 85.38%, meaning for every ₹1 it earns, about 85 paise remain after direct costs.

Why Groww Is Raising Money

• Technology & Infrastructure (₹152.5 crore): Groww will keep improving its backend systems, data management, server capacity, and app speed. This ensures smooth usage even when millions log in at once.
• Brand Building & Marketing (₹225 crore): Despite strong organic growth, Groww wants to expand its brand reach, especially among first-time investors across smaller towns. In FY25, it spent ₹487 crore on marketing, about 12% of its total income, showing its focus on expanding responsibly.
• Lending Growth (₹205 crore): Funds will be invested in its NBFC, Groww Creditserv Technology, to expand personal lending and new credit products such as Loans Against Securities.
• Margin Trading Facility (₹167.5 crore): Groww will invest in its trading loan arm, Groww Invest Tech, to grow its margin trading business and serve active traders better.
• General Corporate Needs: Part of the funds will support working capital, new product development, and overall business expenses.

Strengths:

• Strong Brand and User Trust: With over 1.26 crore active investors and 26% market share, Groww is India’s No.1 online broker. Its retention and organic growth reflect deep trust.
• High Profitability and Efficient Model: Return on Net Worth (RoNW) is 37.57%, meaning for every ₹100 shareholders invested, Groww earned ₹37 in profit. Its profit margin of 44.92% shows nearly half its income becomes profit, rare for digital platforms.
• Scalable and Cost-Light Operations: Its “asset-light” approach keeps costs low. Operating cost fell from 26% of revenue in FY23 to 13.7% in FY25.
• Big Market Coverage: Groww has active users in 98.36% of India’s pin codes, and 81% of them are from outside metro cities. This wide reach ensures steady business growth, even when larger cities experience slower investor activity.
• Strong Institutional Support: Engaged users are more valuable to Groww’s business. Users who try multiple products (like stocks, mutual funds, and loans together) generate 1.32 times more average revenue than those using only one product. This shows the power of Groww’s cross-selling strategy.

Risks:

• Regulatory Changes: When SEBI (India’s market regulator) changes its rules, it directly impacts Groww. In late 2024, new derivative trading fee rules reduced its quarterly revenue by 9.6%, as per the RHP.
• Dependence on Market Activity: When markets slow, trading drops. New transacting users fell from 1.67 million in Q1 FY25 to 0.76 million in Q1 FY26.
• Rising Loan Risks: Groww’s NBFC’s NPA (bad loans) rose from 0.29% in FY24 to 1.68% in FY25, which could hurt returns if it keeps increasing.
• Tech Dependence: It relies on third-party cloud servers. A small outage like the 10-minute order delay in August 2024 can instantly affect millions of customers.
• Negative Operating Cash Flow: Despite profits, cash flows are negative due to expansion costs (₹962 crore in FY25).

For detailed information, visit Groww’s IPO page.

Peer Comparison

As per the RHP, Groww’s listed peers include Angel One, Motilal Oswal, 360 One, and more.

Source: RHP, internal calculation

• Leadership in Active Clients: Groww tops the charts with 1.29 crore NSE active clients as of March 2025, the highest in India. Angel One, its next closest competitor, had 75.8 lakh, showing Groww’s reach nearly doubles that of its biggest rival.
• Rapid Growth in Users: In FY25, Groww’s active clients grew 35.46%, outpacing Angel One’s 24% and Motilal Oswal’s 15.38%. This faster expansion shows its strong digital distribution and appeal to first-time retail investors.
• High Profitability and Returns: Groww’s RoNW of 37.57% is well above peers like Motilal Oswal (22.64%) and Angel One (20.85%). This means Groww generates higher returns on every rupee of shareholder capital compared to others.
• Exceptional Operational Efficiency: With an adjusted EBITDA margin of 59.11%, Groww outperforms the global digital average of around 47-49%. This highlights its ability to scale fast while keeping costs under control.
• Cost Advantage in Unit Economics: Its contribution margin at 85.38% is nearly double that of Angel One’s 46.4%, proving each rupee of revenue leaves Groww with much more to cover fixed costs and generate profit.

Groww’s Financial Performance

Groww’s journey can be summed up as one of rapid growth, short-term setbacks, and a strong rebound.

The company grew its total revenue from ₹1,261 crore in FY23 to ₹4,062 crore in FY25, marking an impressive 79.5% annual growth rate (CAGR). This was powered by its expanding user base from 5.36 million in FY23 to 13.94 million in FY25, and a surge in the trading activity.

However, growth slowed slightly in Q1 FY26, with revenue dipping 9.46% year-on-year. This was due to new SEBI rules that revised fee structures and reduced trading volumes across the market. The number of transacting users dropped from 7.24 million in Q1 FY25 to 6.12 million in Q1 FY26, showing how sensitive revenues are to market regulation and investor sentiment.

Profit trends have been dramatic. The company booked a ₹458 crore profit in FY23 but reported a ₹805 crore loss in FY24. This loss wasn’t due to poor business, it came from exceptional items: a ₹1,339.68 crore one-time tax expense related to a US merger and a ₹778.6 crore management incentive payout. Without these, its operations were profitable and efficient.

By FY25, Groww was back on track with a profit of ₹1,824 crore, supported by a rise in margins. Its adjusted EBITDA margin jumped from 36.47% in FY23 to 59.11% in FY25, reflecting economies of scale and cost efficiency. Even on a quarterly basis, profit improved 12% year-on-year in Q1 FY26 to ₹378 crore, showing operational stability despite market challenges.

The company’s scale is now visible in assets under management. Customer assets rose from ₹47,804 crore in FY23 to ₹2,60,657 crore in Q1 FY26, over a fivefold jump in just two years. This proves customers are not only joining but also entrusting more money to the platform.

Still, its Average Revenue Per User (AARPU) slipped slightly from ₹3,530 in FY24 to ₹3,339 in FY25. The reason: faster growth among smaller investors, called “Aspirational Users”, who trade less frequently but in larger numbers.

Groww IPO Valuation

Groww’s post-IPO valuation is around ₹62,000 crore. Its P/E ratio is about 41x, which means investors are paying ₹41 for every ₹1 Groww will make in profit during the ongoing fiscal year. This is slightly higher than industry peers (average 40x) but justifiable given its scale and growth rate.

With an RoNW of 37% and a contribution margin of 85%, the premium valuation shows confidence in its tech-driven model. However, this also means expectations are high, any slowdown can trigger valuation corrections.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its annualized Q1 FY26 net profits at the upper end of the price band.

Who Leads Groww?

Groww was founded by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, all former Flipkart employees. They built Groww in 2016 to make investing simple for everyone.

• Lalit Keshre (CEO): IIT Bombay graduate with 21 years of experience. Known for blending technology with finance.
• Harsh Jain (COO): IIT Delhi and UCLA alumnus. Focuses on customer behavior and scaling operations.
• Ishan Bansal (CFO): Chartered Financial Analyst with a finance background. Handles numbers, strategy, and investor relations.
• Neeraj Singh (CTO): Tech architect of Groww’s in-house systems. Leads the engineering team, ensuring reliability.

Together, they built one of India’s most trusted fintech brands, now ready for the public stage.

Who’s Making Money from the IPO?

The offer for sale in Groww’s IPO is fully by investor shareholders, while the promoters, Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, are not selling any of their stakes, a strong sign of their long-term confidence in the business.

Leading the sale is Peak XV Partners Investments VI-1, which plans to offload shares worth about ₹1,582.81 crore, earning an impressive 52.4 times return on its investment. YC Holdings II, LLC, another major backer, will sell shares worth ₹1,054.82 crore with a 29 times return, followed by Ribbit Capital V, L.P., selling ₹656.68 crore worth at a 43.5 times gain.

Early investors are witnessing extraordinary profits. Friále Fund IV LLC will sell shares worth ₹113.44 crore at a 344.8 times return, while Kauffman Fellows Fund, L.P. will exit shares worth ₹275.05 crore at 196.1 times. Later-stage investors, such as GW‑E Ribbit Opportunity V, LLC (₹524.64 crore) and Sequoia Capital Global Growth Fund III (₹147.23 crore), are realizing moderate returns of around 2.6 times. This wide return range reflects Groww’s steep value growth across funding rounds and the maturity of its investor base.

Industry Outlook

India’s investment and wealth industry stands at ₹1.1 lakh crore (2025) and is expected to double to ₹2.6 lakh crore by 2030. Only about 5% of adults invest in the market today, meaning huge room to grow.

Three key drivers will shape the future:

• More people are shifting from gold and property to financial products.
• Rising digital adoption and easy apps like Groww.
• Increasing disposable income across smaller towns.

The sector is growing fast, but it must handle regulatory updates, market swings, and cybersecurity challenges responsibly.

Analyst View

Groww’s IPO brings a mix of excitement and caution. The business fundamentals are solid, strong brand, wide reach, and consistent growth. Its high margins and healthy RoNW show real strength.

However, it’s priced at a premium, and success depends on steady trading volumes and strong risk management, especially in lending. For long-term investors who believe in India’s fintech story, this IPO could be a solid digital-age bet, but only if they are comfortable with short-term volatility.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Groww's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.