Is Groww’s ₹7,000 Cr IPO About to Create India’s Next $9 Billion Unicorn?

India’s fintech story has produced some of the most remarkable growth narratives in recent years, and Groww is fast becoming the face of that transformation. The Bengaluru-based wealth-tech platform has filed papers for a ₹7,000 crore IPO, demanding a valuation of about  $9 billion. 

Groww has filed updated DRHP papers with SEBI for a ₹7,000 crore IPO, targeting a valuation near $9 billion (~₹72,000-₹80,000 crore). In the IPO structure, a slight portion of fresh issue of 1,050 crore is proposed, while the majority (~ 5,000–6,000 crore) will be offered by initial and existing investors  in terms of offer for sale. This mix points to Groww’s focus on providing exit liquidity while scaling up its balance sheet selectively.

Financial Turnaround & Strong Profitability

The timing could not be more significant. FY25 was a breakthrough year for Groww. The company has reported extraordinary results at this phase marking ₹4,062 crore in terms of revenue, up 45% from FY24, and the other component that is net profit saw a significant reversal from a loss of ₹806 crore in FY24 to a healthy ₹1,824 crore in FY25. 

Profitability: Posted astonishing remark of net profit (PAT) of ~₹1,824 crore, compared to a loss of ~₹806 crore in FY24. 

Contribution & Net Margins: Contribution margin is around 85%, while net profit margin stood at ~44% in FY25. Such high margins are rare for fintechs in India, suggesting strong operating leverage and efficient cost structure even as the user base grows. 

Customer scale & market share: Active users rose to ~12.6 million, with Groww holding ~26.3% market share among NSE active clients as of mid-2025. That gives it credible clout in broking and trading. 

All this suggests the company has achieved scale without losing cost discipline, a key factor in justifying its $9 billion ambition.

What Makes the $9B Valuation Plausible?

FY25 was a landmark for Groww. Revenue rose ~31–49% YoY from FY24, and the company swung  like it had not consistent profit saw a break due to some domicile shift and posted from a net loss of ~₹805 crore in FY24 to a net profit of ~₹1,824 crore in FY25. Such a swing reflects more than just growth; it signals operating leverage kicking in, better unit economics, and cost discipline. Key margins are strong. FY25 net profit margin is reported at ~44-45%, a dramatic shift from negative margins the previous year. 

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Groww has built scale quickly. Its active client count has crossed 12-13 million on NSE, with market share among active clients possibly touching ~25-26%. Its total customer assets, breadth of product offerings (broking, mutual funds, margin trading, etc.), and strong brand recall give it a network effect. Earlier, many users were acquired organically, helping it keep CAC (customer acquisition cost) lower. The strong FY25 performance is attracting investor confidence. Groww raised $200 million ahead of IPO, valuing it at ~$7 billion. 

Groww isn’t just broking platform. It’s increasingly pushing into margin finance, lending, mutual funds, and wealth-tech services. This diversification helps hedge regulatory risks specific to trading or any one segment. Also, its cost structure is showing signs of efficiency: Revenue per user is rising, costs of acquisition falling, and non-core expenses more manageable. 

Groww IPO: Risks and Concerns

Yet, the IPO is not without risks. The bulk of the issue, nearly ₹6,000 crore will be an offer for sale (OFS), giving early investors a chance to cash out. Only ₹1,050 crore will be fresh issuance, which limits the immediate capital infusion for business expansion. At the same time, competition is intensifying, with Zerodha, Angel One, and new challengers are way forward and constantly innovating. New fintech challengers are aggressive on UX, pricing, and features. Groww must maintain engagement, deepen monetization (ARPU), and avoid churn.

Regulatory oversight on derivatives trading, margin funding, and fees also remains a potential headwind. A premium valuation leaves little room for error if growth were to slow.

So, Can Groww Become India’s Next $9 Billion Unicorn?

Yes, the probability is fairly high, at least contingent on some favorable conditions. Groww has checked many boxes: profitability, revenue scale, strong market position, product diversification and investor confidence. If it delivers consistent growth post-IPO and weather regulatory headwinds without margin dilution, the $9B target seems in reach. Its current performance gives a visible runway.

But it won’t be automatic. Any stumble in growth, sudden regulatory clampdowns, or loss of market share in the face of competition can jeopardize the valuation. IPO pricing will also play a big part  if investors perceive the valuation as fair relative to peers and forward growth, it could get good listing gains; if it seems overstretched, it risks tepid reception.

 In summary, Groww’s IPO appears positioned to make it one of India’s most valuable fintech public companies. With strong financials, scale, and favorable trends in wealth-tech, it has real potential. Whether it crosses the $9 billion unicorn mark depends on execution, competitive resilience, and regulatory stability but the chance is far from speculative; it looks structurally plausible.