Groww’s $1 Billion IPO: Early Backers Like Tiger Global, Peak XV Likely To Pare Stake — Profit Exclusive Agnidev Bhattacharya NDTV Profit

Groww plans to raise about $1 billion through an initial public offering that will include a mix of fresh issue and offer for sale, according to people familiar with the matter.

The Bengaluru-based investment platform has not finalised the proportion between the two components, as several investors are involved in the transaction, one person said on the condition of anonymity.

Early investors like Tiger Global and Peak XV Partners are expected to sell part of their holdings through the offer for sale, another person added.

The company’s early backers also include Ribbit Capital, YC Continuity and Propel Venture Partners.

However, as of now, its four founders — chief executive Lalit Keshre, chief operating officer Harsh Jain, chief technical officer Neeraj Singh and chief financial officer Ishan Bansal — are not likely to sell any stake in the IPO, a third person said.

Bankers involved in the deal anticipate high demand for the IPO, which is likely to be filed through the confidential pre-filing route, and are trying to bring in more supply of shares. This may end up changing the offer structure, the above mentioned person added.

NDTV Profit has reached out to Groww for comments on the story.

Groww is in the process of raising up to $150 million from GIC, as part of a large pre-IPO round, according to people aware of the deal. An IPO after that can value the company at up to $8 billion.

The fintech major began in 2016 as a mutual fund investing platform and expanded its offerings by introducing stocks, IPOs, and ETFs in 2020. The platform was valued at $3 billion in its last funding round in 2021, which was led by Iconiq Growth, along with other investors like Alkeon, Lone Pine Capital and Steadfast.

Earlier in March, the fintech major had signed a definitive agreement to acquire wealth management company Fisdom for approximately $150 million, or around Rs 1,280 crore, in an all cash deal. Its completion is likely to bolster Groww’s capabilities and expand its offerings in the wealth management sector. This will be the company’s second largest acquisition after the Indiabulls AMC deal in May 2023.

. Read more on IPOs by NDTV Profit.The company’s founders, including chief executive officer Lalit Keshre, are not likely to sell any stake in the IPO, people in the know told NDTV Profit.  Read MoreIPOs, Markets, Business, Notifications 

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