IPO-bound Groww sees 3x jump in profit in FY25

The Bengaluru-based startup had registered a profit of ₹545 crore in FY24. 

The company’s revenue rose to ₹4,056 crore, a 31% increase over FY24. 

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When contacted, a Groww spokesperson declined to comment. 

However, in FY24, the company paid a one-time domicile tax of ₹1,340 crore, leading to a ₹805-crore net loss at the consolidated level. The company moved its registered office from Delaware in the US to Bengaluru during the financial year.

Groww’s FY24 numbers are dwarfed by its direct competitor, Zerodha, which clocked ₹8,320 crore revenue and ₹4,700 crore profit. 

Series F funding

Alongside the jump in profit, sources confirmed that the startup closed its $200 million Series F funding round. The investment was led by the Government of Singapore Investment Corporation (GIC), the sovereign wealth fund of the island nation. Existing investor ICONIQ Capital also participated in the latest round. With this round, the company’s valuation stands at $7 billion. 

Mint had previously reported that Viggo Investment Pte., the investment entity of GIC, had approached the Competition Commission of India (CCI) for approval to acquire a 2.143% stake in Groww.

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The closing of the latest round marks a significant step up in Groww’s valuation. The company’s valuation in 2021, when it last raised money, stood at $2.8 billion, after a $251 million Series E round led by ICONIQ Capital, according to Tracxn, a startups data intelligence platform.   

Institutional investors in Groww include Y-Combinator, Tiger Global, Ribbit Capital and Peak XV partners. Angel investors in the startup include the likes of Microsoft’s Satya Nadella as well as Mukesh Bansal of Myntra fame. 

Month after DRHP

Groww’s numbers come barely a month after the company filed its draft papers with the Securities and Exchange Board of India. The startup is looking to raise between $700 million and $1 billion from a public offering. Groww has picked JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd as its banks for its upcoming initial public offering. 

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In the run-up to its IPO, Groww has signed a definitive agreement to acquire wealth-tech startup Fisdom in an all-cash deal for around $150 million, Mint previously reported. The company’s backers include Prosus, Saama and Quona Capital.