Groww’s Next Act: What Comes After The Blockbuster IPO? |
An INR 6,632 Cr issue, oversubscribed 17.6 times at close, a huge premium on listing day and a valuation of over INR 90,000 Cr ($10 Bn) – everything is coming up trumps for Groww.
In just under three days, the stock has climbed 28% after listing at a 14% premium. An intra-day pop of 34% was a standout moment for Groww on its debut and a testament to the brand and public market’s faith in the investment tech and wealthtech opportunity.
Groww listed on the bourses at a P/E multiple of 33-34x – at a little premium over its listed peer like Angel One that’s trading at 19-22x P/E multiple. So naturally there were plenty of questions about this valuation before the debut.
But for the leadership, the IPO was simply a pitstop; the real challenge starts now, says Harsh Jain, cofounder and chief operating officer. “We have a long journey ahead, and the IPO has energised our team and, at the same time, made us all anxious,” Jain told Inc42 before the listing of the wealthtech firm.
In many ways, the Groww IPO was more than a mere market event. It is a reflection of the appetite for investments in equities and mutual funds among Indians.
From a startup that began its journey in 2016 as a millennial-friendly app to simplify mutual fund investing, it added a discount brokerage business to ramp it up to the next level. Then came the asset management business and other verticals. Today, Groww has matured into a diversified multi-sided platform, catering to everyone from HNIs to new investors.
Indeed, its listing comes amid pressures on discount brokerages due to changing regulations. How prepared is Groww to deal with these challenges?
After hitting profits in FY25, Groww recorded a 12% on-year increase in its bottom line for Q1 FY26 to INR 378.4 Cr from INR 338 Cr. The next phase will be built on new products and offerings that take Groww beyond its strongholds.
“Mutual funds were our entry point. Once a user trusts you with one financial product, it becomes easier to help them explore others,” Jain said, hinting at the rationale behind Groww’s entry into new verticals and products.
Jain says the expansion into stocks, derivatives, and ETFs stems from the........