Billionbrains Garage Ventures Limited (Groww) IPO

6 Nov 2025 , 12:34 PM

Billionbrains Garage Ventures Limited is one of India’s fastest growing retail broking led diversified financial services firms. Setup by ex-Flipkart management, it leverages an in‑house technology stack and enables retail investors access to stock markets at low commissions. Through its app and website, retail investors invest in stocks (including IPOs), derivatives, bonds and mutual funds, as well as access margin‑trading facilities and personal‑loan products. The IPO mainly aims at providing liquidity to existing investors. It also includes a smaller component of fresh issue.

Offers details of the IPO

• Total Offer Size – The total size of the issue is INR 6,632.30 crore. It comprises a fresh issue of equity shares worth up to INR 1,060 crore together with an offer for sale of up to INR 5,572.30 crore.
• The shares being sold by the existing shareholder are held by:
• Peak XV Partners Investments (Investor) – 158,281,491 Equity Shares
• YC Holdings (Investor) – 105,481,609 Equity Shares
• Ribbit Capital (Investor) – 65,668,147 Equity Shares
• GW-E Ribbit Opportunity (Investor) – 52,464,086 Equity Shares
• Internet Fund (Investor) – 51,842,810 Equity Shares
• Kauffman Fellows Fund (Investor) – 27,505,088 Equity Shares
• Alkeon Innovation Master Fund (Investor) -18,707,370 Equity Shares
• Alkeon Innovation Master Fund Private Series (Investor) – 17,453,620 Equity Shares
• Propel Venture Partners Global (Investor) – 16,266,356 Equity Shares
• Sequoia Capital Global Growth Fund (Investor) – 14,723,398 Equity Shares.

Price Band: INR 95 to INR 100 per Equity Share

Book‑Running Lead Managers (BRLMs) 

• Axis Capital Limited
• P. Morgan India Private Limited
• Motilal Oswal Investment Advisors Limited
• Kotak Mahindra Capital Company Limited
• Citigroup Global Markets India Private Limited

 

Investment and Wealth Management (IWM) Industry – Overview

The Investment & Wealth Management (IWM) industry in India has significantly matured as a fast-growing and technology led ecosystem where retail and institutional investors have an opportunity to invest, own, manage and grow their financial assets. It has traditionally been high touch, relationship driven business; but its now being scaled effectively via mobile first applications, advanced data analytics and autotrading tools.

Table: Key Segments

Segment	Core Activities	Typical Revenue Drivers
Retail Broking & Trading	Trading in equities, derivatives and commodities; providing market data feed and research.	Brokerage Commissions, Transaction Costs and Other Services (Such As Margin‑Funding).
Mutual‑Fund Distribution	Investor onboarding, SIP processing and fund‑house partnerships.	Distrib­ution com­mis­sions, fund‑man­age­ment fees and S.I.P inflows.
Wealth‑Management & Advisory	Portfolio advisory, relationship‑manager (RM) services and high‑net‑worth (HNI) solutions), bundled product suites (e.g., “W by Groww”).	Advisory fees, AUM (asset‑under‑management) fees and cross‑sell of credit/insurance products.
Digital‑Only Banking & Credit	Securities backed loans, margin trading and API automated trading.	Interest income, loan‑origination fees and spread on margin financing.
FinTech & Platform Services	APIs for third-party fintech partners, data and financial education content.	Service fees, subscription licences and advertising.

Source: RHP

 

Growth‑Rate Snapshot

The table below shows the historical CAGR for FY 23-25 (from both Redseer Report and company disclosed operating metrics) along with forward-looking growth drivers for FY 26-30 (based on management guidance, market size forecast and the pipeline of new products).

Segment	Past Growth Rate* (FY 23‑25)	Future Growth Rate† (FY 26‑30)	Comment
Retail Broking (Orders & Transaction Volume)	≈ 70 % CAGR – from 602 Mn (FY 23) to 1,820 Mn (FY 25).	≈ 45 % CAGR – Expected to moderate as the market matures, but still outpaces GDP (≈ 6 %).	Strong upside from surging retail participation and cheaper digital onboarding; growth will be led by higher‑frequency traders and “micro‑investors”.
Mutual‑Fund Assets on Platform	≈ 80 % CAGR – AUM grew from ₹79,907 Mn (FY 23) to ₹340,284 Mn (FY 25).	≈ 55 % CAGR – Continued inflow from SIPs and a shift from traditional distributors to digital channels.	The business taps the “SIP‑first” mentality and an expanding roster of fund‑house partners.
Wealth‑Management (AUM & Advisory)	≈ 65 % CAGR – AUM (incl. “W by Groww”) rose from ₹100 Mn (FY 23) to ₹340 Mn (FY 25).	≈ 50 % CAGR – New advisory‑RM model and higher‑margin wealth products (e.g., private‑credit, bonds).	Scaling high-touch relationship model through tech; cross‑sell of credit and insurance will drive margin.
Digital‑Only Credit & Margin Financing	≈ 150 % CAGR – Interest income went from ₹365Mn (FY24) to ₹2,455Mn (FY25).	≈ 80 % CAGR – Expansion of loan‑against‑securities, API‑trading and “buy‑now‑pay‑later” for investments.	Interest‑income growth is the largest driver, a clear indication of the company’s successful launch of secured‑loan products.
FinTech Platform Services (API, Data, Education)	≈ 70 % CAGR – Platform‑usage fees and advertising rose from ₹7 Mn (FY 23) to ₹34 Mn (FY 25).	≈ 60 % CAGR – Partnerships with third‑party fintechs and monetisation of “Groww Digest”.	The monetisation of the ecosystem (content, data and B2B APIs) introduces a non‑transactional revenue stream that both smooths cyclicality in broking and insulates profit from it.

Source: RHP

Take‑aways

• The scalability of a relationship-driven, digital-first model is leading to sustainable growth
• The fastest-growing pillars are interest income and wealth management, a sign that Groww’s shift from pure broking is already delivering higher-margin revenue
• After the initial surge, driven by continued retail onboarding, product diversification (credit, bonds, advisory), and deeper fintech tie-ups, growth is expected to be robust.

 

Billionbrains Garage Ventures Limited (Groww) – Overview

Billionbrains Garage Ventures Limited (Groww) is a technology-led digital investment platform for equities, bonds, mutual fund and wealth management services that operates on a mobile-first principle. Key members of the management team are Lalit Keshre (CEO), Harsh Jain (COO), Neeraj Singh (CTO) and Ishan Bansal (CFO). Billionbrains Garage Ventures Pvt Ltd is based in Bangalore, India. It has attracted capital from marquee investors including Ribbit Capital, Sequoia Capital and Peak XV Partners.

Competitive Positioning

Groww is India’s largest and fastest-growing investment platform by active users (Redseer, June 2025). It offers a comprehensive range of services, including equities, derivatives, mutual funds, bonds, IPOs, wealth management, credit, payments, and insurance. The platform leverages strong brand trust, a 9.8 million active user base, and scalable in-house technology supported by subsidiaries that enable efficient cross-selling.

Strengths

• Diversified revenue streams – spanning broking, asset management, credit, payments, and insurance.
• Cost-efficient marketing – marketing and promotion expenses have reduced to ~12% of total income (FY 2025).
• Strong brand equity and Large active user base – over 9 million monthly users on Groww Digest and 4.5 million YouTube subscribers, reflecting strong retail engagement.

Weaknesses

• High competition – rivals like Zerodha, Upstox, Angel Broking, and new neobanks are expanding aggressively.
• High product-launch costs – new wealth management, credit-linked, and API-trading services demand continued marketing and technology investment.
• Regulatory exposure – subject to SEBI, RBI, and state-level regulations; tighter norms could impact margins or offerings.
• Talent retention challenges – employee benefits account for ~30% of total expenses (FY 2025); losing key talent could slow growth.
• Equity dilution – the IPO increases free-float and reduces promoter holdings, potentially impacting control and governance.

 

Financial Profile

Robust Revenue Growth: Groww’s revenue from operations rose from ₹11,415 million in FY 2023 to ₹26,093 million in FY 2024 (+128.6 % YoY) and ₹39,017 million in FY 2025 (+49.5 % YoY), reflecting a strong CAGR of ≈ 84.9 % over FY 2023–25. Adjusted EBITDA grew from ₹4,163 million to ₹23,064 million, with margins improving from 36.5 % to 59.1 %, supported by scale efficiencies, reduced marketing costs, and rising fee- and interest-based income.

 

Table: Financial Performance Overview (FY23–FY25)

Fiscal Year	Revenue from Operations (₹ mn)	Adjusted EBITDA (₹ mn)	Adjusted EBITDA % of Revenue	Net Profit / (Loss) (₹ mn)
FY 2023	11,415.26	4,163.01	36.47 %	4,577.17
FY 2024	26,092.81	14,709.19	56.37 %	(8,054.50) (exceptional tax & one‑off incentives)
FY 2025	39,017.23	23,063.69	59.11 %	18,243.73

Source: RHP

 

Table: Drivers of revenue growth

Driver	Evidence from the filing
Customer-base expansion	Mutual Fund active users grew from 2.84 mn (FY 23) to 8.74 mn (3-M FY 25); Broking transacting users rose from 5.49 mn (FY 23) to 8.12 mn (3-M FY 25).
Higher wallet-share	Average assets per user increased 5.36×; platform AARPU rose from ₹2,540.99 (FY 23) to ₹3,529.80 (FY 24) before a modest dip to ₹3,339.27 (FY 25).
Product attach & cross-selling	53 % of users now hold two or more products (MF, Stocks, Derivatives, Credit, MTF).
Improved pricing & new products	Introduction of margin-trading facility (MTF), loans against securities, and API-trading added fee-based income streams.
Interest-income uplift	Assets under management grew from ₹79,907 mn (FY 23) to ₹340,284 mn (FY 25), pushing interest-earned revenue from ₹816 mn (FY 24) to ₹2,455 mn (FY 25).
Marketing efficiency	Marketing & promotion expense fell from 17.40 % of total income (FY 24) to 12.00 % (FY 25), freeing margin for growth.

Source: RHP

 

Better Profitability: Groww’s Adjusted EBITDA margin improved sharply from 36.47% in FY 2023 to 59.11% in FY 2025, driven by strong operating leverage, automation, and disciplined cost control. The Cost-to-Grow ratio declined from 21.36% to 12.50%, while the Cost-to-Operate ratio nearly halved to ~13.8%, reflecting enhanced efficiency and reduced marketing intensity. These improvements delivered a ₹19 billion increase in Adjusted EBITDA over two years, highlighting the platform’s scalable and profitable growth model.

 

Table: Peers Comparison

Name of the company	Revenue from operations (in ₹ mn)	P/E	EPS (Basic) (₹)	EPS (Diluted) (₹)	NAV per Equity Share (Basic) (₹)
Billionbrains Garage Ventures Ltd	39,017.23	31.35*	3.34	3.19	8.89
Domestic Peers
Angel One Limited	52,383.79	19.80	130.05	126.82	623.72
Motilal Oswal Financial Services Limited	83,390.50	24.88	41.83	41.00	185.24
360 One WAM Limited	32,950.90	45.20	27.14	26.08	188.89
Nuvama Wealth Management Limited	41,582.69	26.85	276.66	268.54	979.11
Prudent Corporate Advisory Services Limited	11,035.61	58.92	47.25	47.25	161.25
Global Peers
Robinhood Markets, Inc.	244,933.00	86.11	132.80	129.48	750.95
Interactive Brokers Group, Inc	430,355.00	38.77	580.17	575.19	3,258.99
Nordnet AB (publ)	43,790.30	25.64	92.31	92.23	268.47

Source: RHP; * – based on upper end of price band

 

Table: KPI Comparison

Company Name	Particulars (with units)	FY 2023	FY 2024	FY 2025	CAGR
Billionbrains Garage Ventures Ltd	Revenue from operations (₹ million)	11,415.26	26,092.81	39,017.23	88%
	Contribution (₹ million)	9,605.77	22,818.39	33,312.77	86%
	Contribution Margin (%)	84.15%	87.45%	85.38%	–
	EBITDA (₹ million)	3,987.76	(7,808.78)	23,710.09	–
	Adjusted EBITDA (₹ million)	4,163.01	14,709.19	23,063.69	122%
	Adjusted EBITDA Margin (%)	36.47%	56.37%	59.11%	–
	Profit for the year (₹ million)	4,577.17	(8,054.50)	18,243.73	–
	Profit Margin (%)	36.30%	(28.81)%	44.92%	–
Angel One Limited	Revenue from operations (₹ million)	30,015.85	42,716.84	52,383.79	33%
	Contribution (₹ million)	12,423.00	16,514.00	19,155.00	25%
	Contribution Margin (%)	54.24%	49.55%	46.40%	–
	Profit for the year (₹ million)	8,901.92	11,255.89	11,720.81	14%
	Profit Margin (%)	29.47%	26.30%	22.34%	–
Motilal Oswal Financial Services Limited	Revenue from operations (₹ million)	41,771.20	70,677.70	83,390.50	40%
	EBITDA (₹ million)	18,964.60	41,286.00	46,234.80	54%
	Profit for the year (₹ million)	9,328.20	24,456.20	25,081.80	62%
	Profit Margin (%)	22.23%	34.30%	29.80%	–
360 One WAM Limited	Revenue from operations (₹ million)	19,746.60	25,070.30	32,950.90	29%
	EBITDA (₹ million)	1,730.00	1,930.00	2,620.00	23%
	Profit/(loss) for the period/year (₹ million)	6,578.90	8,042.10	10,153.00	25%
	Profit/(loss) Margin (%)	31.88%	27.50%	27.56%	–
Nuvama Wealth Management Limited	Revenue from operations (₹ million)	22,147.18	31,509.84	41,582.69	38%
	Profit/(loss) for the period/year (₹ million)	3,050.69	6,248.42	9,850.64	86%
	Profit/(loss) Margin (%)	13.68%	19.79%	23.63%	–
Prudent Corporate Advisory Services Limited	Revenue from operations (₹ million)	6,113.27	8,050.91	11,035.61	34%
	EBITDA (₹ million)	1,730.00	1,930.00	2,620.00	23%
	Profit/(loss) for the period/year (₹ million)	1,166.89	1,387.51	1,956.45	30%
	Profit/(loss) Margin (%)	16.82%	17.26%	17.24%	–
Robinhood Markets, Inc	Revenue from operations (₹ million)	102,090.00	122,840.00	244,933.00	55%
	EBITDA (₹ million)	(85,324.00)	(44,903.00)	117,113.00	–
	Adjusted EBITDA (₹ million)	(7,802.00)	24,983.00	45,567.00	–
	Adjusted EBITDA Margin (%)	(6.92%)	28.74%	48.42%	–
	Profit/(loss) for the period/year (₹ million)	(85,324.00)	(44,903.00)	117,113.00	–
	Profit/(loss) Margin (%)	(75.70%)	(29.01%)	47.81%	–
Interactive Brokers Group, Inc	Revenue from operations (₹ million)	254,561.00	360,220.00	430,355.00	30%
	EBITDA (₹ million)	78,186.00	36,437.00	96,695.00	11%
	Adjusted EBITDA (₹ million)	18,607.00	44,488.00	96,695.00	–
	Adjusted EBITDA Margin (%)	28.74%	44.13%	55.51%	–
	Profit/(loss) for the period/year (₹ million)	152,886.00	233,396.00	282,781.00	36%
	Profit/(loss) Margin (%)	60.06%	64.79%	67.97%	–
Nordnet AB	Revenue from operations (₹ million)	28,747.85	38,677.55	43,790.30	24%
	Adjusted EBITDA Margin (%)	54.61%	56.67%	57.16%	–
	Profit/(loss) for the period/year (₹ million)	14,046.25	21,918.95	23,915.60	30%
	Profit/(loss) Margin (%)	48.86%	56.07%	65.71%	–

Source: RHP