Groww IPO

It is India’s largest and fastest-growing investment platform by active users on NSE as of June 30, 2025, holding 26.3% market share in terms of monthly active users. Its market share in Retail Cash ADTO across BSE and NSE significantly grew to 23.66% by June 2025, demonstrating strong market traction.

Revenue from operations grew at a CAGR of 84.88% from FY23 to FY25. Its "Adjusted Cost to Operate" declined from 26.32% in FY23 to 13.77% in FY25, demonstrating effective cost management and scaling efficiency, contributing to profitability.

Its profit margin was 44.92% for FY25. This demonstrates strong efficiency, outperforming all listed Indian peers like Angel One (22.34%) and Motilal Oswal (29.80%).

With Active Users in 98.36% of Indian pin-codes and approximately 81% outside the top-6 cities, it boasts deep market penetration. High organic customer acquisition, reaching 83.16% in the three months ended June 30, 2025, helps maintain low customer acquisition costs.

User Friendliness was the most appreciated feature of its app on Google Play reviews from FY23 through the three months ended June 30, 2025. This design approach leads to higher customer engagement, with multi-product users showing 1.32x higher AARPU in FY25.

Its proprietary technology platform can handle approximately 50 million users simultaneously and execute around 50 million orders daily, ensuring scalability, speed, and quick adaptation to market and regulatory changes. Its peak transactions per second (TPS) were at par with UPI transactions in FY24.

It offers a wide range of financial products, including stocks, derivatives, bonds, mutual funds, and personal loans. It has also ventured into wealth management with "W by Groww" and launched innovative AMC products, such as the "Total Market Index Fund," catering to diverse investor needs.

Its business is highly susceptible to financial market performance and geopolitical events, which can reduce trading volumes. New Transacting Users declined from 1.67 million in the three months ended June 30, 2024, to 0.76 million in the three months ended June 30, 2025, due to market slowdowns.

Operating in a highly regulated industry, it faces risks from evolving laws and rules. Recent SEBI circulars in October 2024, impacting derivatives and fee structures, led to a temporary decline in broking service revenues.

It operates in an intensely competitive investment and wealth management market, facing established players, banks, and new entrants. Competitors often possess greater financial resources or wider customer bases, intensifying the challenge to maintain its market share.

It reported a net loss of ₹804.94 crore in FY24, primarily due to one-time tax expenses (₹1,339.68 crore) and substantial management incentive payouts (₹778.6 crore). While non-recurring, similar future obligations or substantial costs could hinder sustained profitability.

As per the company’s UDRHP, it received a notable number of customer complaints (1,069 in Q1 FY26) regarding issues like fund withdrawals or technical problems. However, the company responded to 1,067 complaints.

Groww subsidiaries, such as Groww Asset Management Limited, lost money in Fiscal Year 2025, with that subsidiary alone recording a loss of ₹57.54 crore. This primarily occurred because the subsidiaries increased expenses to support rapid growth. If these losses continue, Groww must provide financial support, which will negatively impact its overall cash flow and consolidated financial results.