Groww, backed by Satya Nadella, set to become first Indian startup to go public after U.S.-to-India move

Groww, India’s largest retail brokerage agency, is ready to check the nation’s public markets with a multi-billion-dollar IPO. The itemizing comes comes simply over a yr after the corporate restructured its corporate headquarters from Delaware again to India — a transfer that would make it the primary Indian startup to checklist at residence following a relocation from the U.S.

Backed by Microsoft CEO Satya Nadella and marquee traders together with Y Combinator, Ribbit Capital, and Tiger International, Groww’s itemizing — anticipated later this yr — is ready to double as a serious exit alternative for international enterprise funds. The three funding corporations are offloading about 236 million shares — roughly 5.6% of Groww’s whole fairness base — per the draft IPO paperwork filed on Tuesday. That makes them the only largest promoting bloc, accounting for about 41% of all shares being provided to the general public.

Pine Labs, Razorpay, Meesho, and Zepto are among the many Indian startups which have lately shifted their base again residence. Walmart-backed PhonePe relocated its headquarters from Singapore to India in 2022, whereas Flipkart — as soon as its mother or father and likewise backed by Walmart — equally introduced plans to maneuver its headquarters from Singapore to India earlier this yr.

Final yr, Groww turned one of many first startups to shift its headquarters again to India from the U.S. The startup paid around $159 million in taxes as a part of the transfer.

Relocating their base again residence helps startups align with evolving native rules and meet necessities for home inventory listings. It additionally is sensible to faucet India’s public markets, given the increasing retail investor base and rising urge for food for IPOs. The pattern displays the rising maturity and attractiveness of India’s capital markets in comparison with abroad alternate options.

Whereas U.S. traders plan to dump a big chunk of their holdings in Groww, founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal collectively are promoting solely about 4 million shares — solely 0.7% of the entire provide on the market, per the draft prospectus.

The small sale indicators that Groww’s founders are holding on to almost all their fairness, in distinction to the established traders who’re utilizing the IPO as an exit route.

Groww plans to lift ₹10.6 billion (roughly $121 million) in new funding from the IPO, together with the secondary sale of 574 million shares by current shareholders, anticipated to be priced at ₹5–6 billion (roughly $568–$682 million). The IPO is expected to worth the Bengaluru-based firm at $9 billion.

Within the fiscal yr ending March 31, Groww reported whole revenue of ₹40.6 billion (about $462 million), up 45% year-on-year, with revenue after tax of ₹18.2 billion (roughly $208 million). The startup had posted a internet lack of about ₹8 billion (round $92 million) within the earlier yr, primarily attributable to bills tied to its Delaware headquarters relocation.

As of June, Groww had about 37.4 million particular person demat accounts (digital accounts that maintain securities electronically), representing almost 19% of India’s market, together with 12.6 million energetic shoppers on the Nationwide Inventory Change, equal to a 26% share. The platform additionally counted round 17 million energetic systematic funding plans (SIPs, that are recurring month-to-month investments) and 9 million distinctive mutual fund traders, changing into the one funding app within the nation to surpass 100 million cumulative downloads.

The providing is being suggested by JPMorgan Chase, Kotak Mahindra Financial institution, Citigroup, Axis Financial institution and Motilal Oswal Funding Advisors.