Microsoft CEO-Backed GROWW Files for $9 Billion IPO as India's Largest Fintech Public Debut

GROWW, India's largest retail brokerage platform, filed Tuesday for what could become the country's biggest fintech IPO, targeting a $9 billion valuation that would surpass competitor Angel One by nearly 4x. The Bengaluru-based company, backed by Microsoft CEO Satya Nadella and marquee investors including Y Combinator, Tiger Global, and Ribbit Capital, plans to raise between $650-800 million in what represents a critical test for India's fintech sector.

The IPO filing marks a historic milestone as GROWW becomes the first Indian startup to pursue a public listing after relocating its corporate headquarters from Delaware back to India in 2024. The company paid approximately $159 million in taxes as part of the restructuring, reflecting the strategic importance of accessing domestic capital markets rather than pursuing overseas listings.

Profitable Growth Story Contrasts with Paytm Disaster

GROWW's public debut comes four years after Paytm's catastrophic IPO that lost over 75% of its value and scarred Indian retail investors on fintech stocks. Unlike Paytm, GROWW brings compelling profitability metrics to market, reporting ₹18.2 billion ($208 million) in net profit for fiscal 2025, a dramatic turnaround from the ₹8 billion loss in the previous year primarily due to relocation expenses.

The company's revenue surged 45% to ₹40.6 billion ($462 million) in fiscal 2025, with a remarkable net margin of 44.85%. This profitability achievement positions GROWW as India's second-most valuable fintech after PhonePe, assuming the $9 billion valuation holds through the offering process.

"Unlike many fintech unicorns that are still searching for sustainable unit economics, GROWW has proven it can scale profitably," said Ashish Sharma, managing partner at IndiQube Ventures. The company's market share in India's retail brokerage sector expanded from 20.9% to 26.3% in fiscal 2024, overtaking established player Zerodha to become the leader by active client base.

Strategic Investor Backing Validates Market Position

Microsoft CEO Satya Nadella's personal investment in GROWW, announced in January 2022, represents his first publicly disclosed startup investment and validates the company's long-term growth trajectory. The backing from one of technology's most respected executives provides both credibility and strategic value as GROWW expands its financial services ecosystem.

The company serves 37.4 million individual demat accounts, representing nearly 19% of India's market, with 12.6 million active clients on the National Stock Exchange commanding a 26% market share. This scale advantage, combined with strong unit economics, differentiates GROWW from competitors struggling with customer acquisition costs and retention challenges.

GROWW's IPO structure includes ₹10.6 billion ($121 million) in fresh equity issuance alongside secondary sales of 574 million shares by existing investors. Notably, founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal are selling only 0.07% of total shares, signaling confidence in the company's future prospects while allowing early investors to realize returns.

Major VC Exit Opportunity Drives Offering Size

Tiger Global, Y Combinator, and Ribbit Capital are collectively offloading approximately 236 million shares, representing 5.6% of GROWW's equity base and accounting for 41% of all shares offered to the public. This represents a significant exit opportunity for global venture funds that backed GROWW through multiple funding rounds, including the company's Series E that valued it at $3 billion in October 2021.

The timing of the IPO capitalizes on India's robust public market performance, with retail investor participation reaching record levels. The Bombay Stock Exchange has added over 35 million new retail accounts since 2020, creating a natural customer base for GROWW's investment platform services.

JPMorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank, and Motilal Oswal are serving as lead managers for the offering, reflecting the strategic importance of this transaction for India's capital markets. The syndicate's global reach should help attract both domestic and international institutional investors.

Expansion Strategy Targets Financial Services Ecosystem

GROWW plans to deploy IPO proceeds across technology development, brand building, and business expansion initiatives. The company allocated ₹225 million for marketing activities, ₹205 million for its NBFC arm to support lending capabilities, and ₹167.5 million for margin trading facility expansion.

The strategic focus on building a comprehensive financial services platform positions GROWW to capture additional revenue streams beyond core brokerage fees. Recent acquisitions include wealth management platform Fisdom, while new product launches encompass commodities trading and sovereign gold bonds.

"We're building India's most trusted financial services platform," said CEO Lalit Keshre in recent investor communications. The company's expansion into lending, wealth management, and alternative investments reflects ambitions to become a one-stop financial destination for India's growing retail investor base.

Market Test for Fintech Valuations

GROWW's IPO success or failure will significantly influence how public markets value India's fintech unicorns, many of which still require substantial valuation corrections from private market highs. Companies like Razorpay, Pine Labs, and others are closely watching GROWW's reception as they consider their own public market timing.

The listing comes as India's fintech sector is projected to reach $420 billion by 2029, up from approximately $110 billion in 2024, driven by government digitization initiatives and increasing smartphone penetration. GROWW's ability to demonstrate sustainable profitability at scale provides a blueprint for how fintech companies can successfully transition from growth-at-all-costs to profitable expansion models.

For enterprise software buyers and fintech infrastructure providers, GROWW's public debut validates the massive opportunity in India's retail financial services market while highlighting the importance of achieving unit economics before pursuing scale.