Groww to File Updated IPO Papers
The online investment platform Groww is preparing to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as early as next week. The Peak XV-backed company is aiming for a November listing, with an IPO size between $700 million and $1 billion, potentially valuing the company between $7 billion and $9 billion.
Groww already has SEBI's approval to go public. On May 26, 2025, the company submitted its draft IPO papers via the confidential filing route. This confidential filing allows companies to initiate the regulatory process discreetly before making public disclosures. Groww would be among the first startups to list after completing a reverse flip — shifting its parent entity's domicile from the US back to India.
The IPO is expected to consist of a fresh issue of shares and an offer for sale (OFS) by existing investors, allowing early backers to partially exit their investments. The exact size of the IPO and shareholding details will be disclosed later, subject to SEBI's review and subsequent public filing.
Founded in 2016 by ex-Flipkart executives, Groww has rapidly expanded its user base by offering a simplified, digital-first investing experience. Groww counts Y Combinator, Peak XV Partners, Tiger Global, Ribbit Capital, and Singapore's sovereign wealth fund GIC among its major backers. So far, it has raised around $596 million in equity funding.
While its stockbroking business remains central, Groww is diversifying into digital lending, payments, and wealth management. It recently agreed to buy PayU-backed Fisdom in a $150 million all-cash deal and is developing W, its wealth management platform.
Indian IT's New Direction
India's IT sector is undergoing a transformation, with significant growth opportunities driven by emerging technologies and digital transformation. The IT sector in India is expected to experience robust growth in 2025. IT exports are projected to reach $210 billion in the 2024-25 financial year, representing 18% of global IT outsourcing spending. Overall IT spending in India is forecast to increase by 11.2% to nearly $160 billion in 2025. Job opportunities in the IT sector are anticipated to grow by 15-20% across various industries.
The Indian IT industry is projected to reach US$ 350 billion by 2026 and contribute 10% towards the country's gross domestic product (GDP). IT spending in India is estimated to record double-digit growth of 11.1% in 2024, totaling US$ 138.6 billion. By 2025, the Indian software product industry is projected to hit Rs. 8,68,700 crore (US$ 100 billion) as companies seek to expand globally.
Emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML) are driving innovation, with 75% of Indian enterprises expected to integrate AI into their processes by 2025. Cloud computing, particularly hybrid cloud models, is gaining traction, with 62% of Indian companies planning to implement hybrid cloud strategies.
To sustain growth, Indian IT companies should focus on upskilling their workforce in areas like AI, machine learning, data analytics, and cloud technologies to meet the growing demand for specialized tech roles. The government should invest in education and training, aligning curricula with the evolving needs of employers and the global technology landscape.
