India’s Largest Broking IPO: Groww’s Rs 6,600-Cr Offering — Subscribe or Avoid?

India’s largest and fastest-growing investment platform, Billionbrains Garage Ventures Ltd (Groww), is gearing up to go public with a Rs 6,600-crore IPO. The offering includes a Rs 1,060-crore fresh issue and a Rs 5,572-crore offer-for-sale. The subscription window will remain open until November 7.

This marks the largest IPO in India’s broking industry, coming at a time when retail participation in the financial markets is at an all-time high, fueled by the rise of digital-first trading platforms.

The crucial question is — is this IPO worth your investment, or should you stay cautious? Dive into our detailed IPO analysis covering growth prospects, financials and potential red flags before you decide.

Groww IPO Details 

• Issue Details: Mainstream
• Issue Size: Rs 6,632.30 crore
• Fresh Issue: Rs 1,060 crore
• Offer for Sale: Rs 5,572.30 crore
• Price Band: Rs 95 – Rs 100
• Lot Size: 150 shares
• Listing Date: November 12, 2025

Groww: Business Overview

• Groww is India’s largest and fastest-growing investment platform by active users on the NSE, as of June 30, 2025. Operating as a direct-to-customer (D2C) digital platform, Groww eliminates the need for branches, relationship managers or physical infrastructure. This approach allows the company to offer seamless online transactions at scale, with minimal marginal costs.
• The platform offers a wide range of financial products, including stocks, mutual funds, bonds, derivatives, credit lines and wealth management solutions. This positions Groww as a comprehensive financial super-app. However, broking remains the core revenue driver, contributing approximately 85% of its total revenue from operations in FY25.

Groww Key Strengths

• Strong Presence: Groww has a presence in 98.36% of India's pin codes, with approximately 81% of its users located outside metro cities. It is the only investment app in India to have crossed the 10 crore download milestone.
• Market Leadership: Groww achieved market leadership based on NSE active clients by September 2023, within just four years. Its market share in Retail Cash ADTO (average daily turnover) across BSE and NSE grew from 12.66% in FY24 to 19.31% in FY25, reaching 23.66% in the three months ended June 2025. Similarly, retail Derivatives ADTO market share increased from 7.59% in FY24 to 14.43% in June 2025. Groww is also a leading platform for mutual fund distribution, with a 13% market share in SIP inflows for June 2025.
• Remarkable Financial Performance: Revenue from operations has seen impressive growth, expanding at a CAGR of 85% between FY23 and FY25. Net profit also surged from Rs 457 crore to Rs 1,824 crore during this period, despite a one-time setback in FY24 when the company reported an Rs 805 crore loss due to a tax payment related to shifting its parent entity from the US to India. Operating profit margins have grown significantly, rising from 36% to 59%.
• Robust Growth in User Base: Active user base grew at a CAGR of 52.74% from the beginning of FY23 to the three months ended June 30, 2025. Groww’s strong brand recall has driven impressive organic customer acquisition, with around 83% of customers acquired organically during the same period.
• High Client Retention & Engagement: 77.7% of active clients have been with Groww for over three years, reflecting strong customer loyalty. The Daily Active Users (DAU) to Monthly Active Users (MAU) ratio for transacting users was 56.29% in FY25, highlighting high engagement.
• Revenue Growth per Employee: Groww's efficiency has improved significantly, with revenue per employee rising to Rs 2.61 crore in FY25, marking a 2.5x increase over two years. Adjusted EBITDA per employee also saw a remarkable 4x increase, reaching Rs 1.54 crore in FY25.

Groww Risk Factors

• Cyclicality of Business: Groww’s revenue is primarily driven by brokerage services, making it highly sensitive to changes in market sentiment. A downturn in the market could lead to lower trading volumes, lower SIP inflows and fewer new account sign-ups, ultimately affecting revenue.
• Regulatory Tightening: Evolving SEBI regulations may increase compliance costs or compress revenue margins. For instance, SEBI’s new framework for derivatives led to a 38% drop in notional daily turnover in the derivatives segment between June 2024 and June 2025, with a nearly 36% decline in individual investor participation in the F&O segment. Consequently, revenue fell in Q1FY26 compared to the same period in FY25.
• Cybersecurity & Technology Dependence: As a fully digital broker, even brief downtime or security breaches could harm trust and lead to customer churn.
• Credit Exposure & Subsidiary Risk: Groww’s NBFC and MTF operations introduce counterparty and regulatory risks, diverging from its original low-risk model.
• Competitive Pressure: The brokerage sector is highly competitive, with full-service brokers backed by banks and discount brokers like Zerodha, Upstox and Angel One aggressively vying for market share. These rivals are driving innovation through competitive pricing and advanced analytics. To maintain its edge, Groww must continually innovate its product offerings and enhance the user experience.

Final Thoughts: Should You Subscribe to Groww’s IPO?

• Groww is India’s largest and fastest-growing investment platform by active users on the NSE as of June 30, 2025. Its strong brand franchise, technology-driven platform and consistent efforts to diversify revenue streams beyond traditional broking income make it a reassuring proposition for investors.
• That said, the IPO appears fully priced, commanding a P/E multiple of 30x FY25 earnings. However, unlike many other new-age fintech players, Groww stands out as a profitable company with robust financials and disciplined execution.
• On the industry front, discount brokers have firmly taken the lead—accounting for nearly 76–78% of active NSE clients in FY25, a sharp rise from 38–40% in FY20 and just 6–8% in FY15. This trend highlights the structural shift in favour of digital platforms, supported by rising retail participation, deeper fintech penetration and an expanding suite of credit and wealth products. The long-term outlook for the sector remains strong.
• Given Groww’s dominant market position in digital brokerage and lending, rapidly expanding user base and scalable business model, investors may consider subscribing to the IPO. Over the long term, maintaining high growth and profitability will be critical for sustaining its valuation and fulfilling investor expectations.

For a deep dive into other IPOs, explore: IPO Corner on Liquide