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Groww IPO values founders’ stake at $1.85 Bn; Y Combinator set for 29X return in OFS

Entrackr · 7d ago

Medial

Groww IPO values founders’ stake at $1.85 Bn; Y Combinator set for 29X return in OFS Digital investment platform Groww filed its Red Herring Prospectus (RHP) on October 29, 2025, for its Rs 6,632.3 crore initial public offering (IPO). The issue will open for subscription on November 4 and close on November 7. According to the RHP, Groww’s IPO will comprise a fresh issue of shares worth Rs 1,060 crore and an offer for sale (OFS) of Rs 5,572.3 crore at the upper price band of Rs 100 per share, with early major investors participating in the OFS. The offering is expected to value the company at around Rs 61,736 crore (approximately $7 billion). Groww’s marquee investors are set to earn significant returns from the IPO. Peak XV Partners, the company’s largest shareholder with a 19.87% stake, will partially exit by selling around 3 crore shares worth Rs 305.5 crore, yielding a 5.2X return on its investment. Meanwhile, Ribbit Capital will be the largest selling investor, offloading shares worth Rs 1,181 crore, giving it a return multiple of 5.5X. Y Combinator, which holds a 13.42% stake in Groww, will be offloading 10.5 crore shares worth Rs 1,054.8 crore. Based on its average acquisition cost of Rs 3.45 per share, the firm is set to earn an impressive 29X return on its investment. Another key investor, Tiger Global, will also participate in the OFS, selling shares worth Rs 518.4 crore for a 4.55X return. Kauffman Fellows, one of Groww’s early backers, is set to earn the highest return of 196X on its investment, with an average cost of acquisition of just Rs 0.51 per share. Meanwhile, Alkeon Capital, Nirman Ventures, and Propel Venture Partners will also participate in the OFS, selling shares worth Rs 447 crore, Rs 179 crore, and Rs 162.7 crore, respectively. Groww’s co-founders are set to see a substantial increase in the value of their holdings following the IPO, with their collective stake valued at Rs 16,316 crore ($1.85 billion). CEO Lalit Keshre, who holds a 9.12% stake, will see his shareholding valued at Rs 5,591 crore (around $635 million). COO Harsh Jain’s stake is valued at Rs 4,116 crore ($467 million), while co-founders Neeraj Singh and Ishan Bansal hold stakes worth Rs 3,832 crore ($435 million) and Rs 2,777 crore ($315 million), respectively. Last month, Groww’s co-founders collectively pocketed over Rs 700 crore through incentives and secondary share sales. Groww continued to lead India’s stockbroking space with 11.9 million active users and a 26.28% market share as of September. However, its user base saw a 1.36% month-on-month decline from 12.07 million in August. The Bengaluru-based stock broking and wealth management firm’s operating revenue surged nearly 50% year-on-year to Rs 3,902 crore in FY25, while its profit soared to Rs 1,824 crore during the same period. In Q1 FY26, however, Groww’s revenue declined nearly 10% YoY to Rs 904.4 crore, with the company posting a profit of Rs 378.36 crore.