Company Overview
Billionbrains Garage Ventures Ltd (Groww) is India’s largest and fastest-growing digital investment platform, enabling customers to invest directly in equities, mutual funds, derivatives, ETFs, bonds, and IPOs. Founded in 2016 by former Flipkart executives, the company operates under a direct-to-customer (D2C) model, focusing on simplicity, transparency, and accessibility.
As of June 2025, Groww had 12.6 million active users on NSE, commanding a 26%+ market share, making it India’s leading online brokerage by active client base. The platform has also built a robust presence in mutual fund distribution, with a 13% share of SIP inflows, up from 6% in June 2023.
Groww’s user base is predominantly young and retail-focused, with around 81% users outside the top 6 cities and a median age of 31 years. Its in-house technology stack, seamless onboarding, and intuitive interface have driven high engagement — reflected in a DAU/MAU ratio of ~55% in FY24 and ~56% in FY25.
The company’s operations are supported by subsidiaries engaged in margin trading (GIT), consumer credit (GCS), and technology services, forming a holistic wealth-tech ecosystem.
Promoters & Shareholding
| Shareholding | Pre-Issue | Post-Issue |
| Promoter & Promoter Group | 28.3% | 27.8% |
| Public & Others | 71.7% | 72.2% |
| Total | 100% | 100% |
Public Issue Details
- Issue Type: Fresh Issue + Offer for Sale
- Price Band: ₹95 – ₹100 per share
- Issue Size: ₹6,632 crore (Fresh Issue ₹1,060 crore; OFS ₹5,572 crore)
- Face Value: ₹2 per share
- Market Capitalisation (Post-Issue): ₹58,702 – ₹61,736 crore
- Offer Period: November 04 – November 07, 2025
- Listing Date: November 12, 2025
- Lot Size: 150 shares and multiples thereof
- Book Running Lead Managers: Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Axis Capital, Motilal Oswal Investment Advisors
- Registrar: MUFG Intime India Pvt. Ltd.
- Issue Allocation: QIB 75%, NII 15%, Retail 10%
Objects of the Offer
| Purpose | Estimated Utilisation (₹ crore) |
| Cloud Infrastructure Expansion | 152.5 |
| Brand Building & Performance Marketing | 225.0 |
| Capital Infusion into Subsidiary (GCS) | 205.0 |
| Funding MTF Business (GIT) | 167.5 |
| Inorganic Growth & General Corporate Purposes | Balance (up to 35% of gross proceeds) |
Pros
- Market Leadership: India’s largest retail broking platform with 26%+ market share.
- Diverse Product Suite: Integrated investment ecosystem across equities, MFs, credit, and MTF.
- Technology Backbone: Fully in-house tech stack ensuring scalability and lower marginal cost.
- Strong User Engagement: DAU/MAU ratio >55% and ~89% retention for multi-product users.
- High Growth: Revenue CAGR of ~85% and PAT CAGR of ~100% over FY23–25.
- Widening Customer Reach: 81% of active users from Tier-2 and Tier-3 regions.
Risks
- Expensive Valuation: High implied P/E (33.8x FY25) and EV/EBITDA (23.5x) relative to peers.
- Market Dependency: Revenue heavily linked to market turnover and retail participation.
- Regulatory Exposure: Subject to SEBI and RBI compliance for broking and NBFC activities.
- Operational Risk: Any disruption in the digital platform could significantly affect business continuity.
- Competitive Intensity: Fierce rivalry with other digital brokers may compress margins.
Industry Outlook
The Indian capital markets and wealth management industry are in a structural upcycle, aided by rising financialisation, digital penetration, and first-time investors. The broking sector is expected to grow at a 14–16% CAGR during FY25–30, driven by continued retail participation, product diversification, and expansion into credit-linked services.
However, the space is becoming increasingly competitive, with established brokers investing in technology and newer entrants offering discount pricing, potentially limiting margin expansion.
Financial Snapshot (₹ Crores)
| Particulars | FY23 | FY24 | FY25 | 1QFY26 |
| Revenue from Operations | 1,142 | 2,609 | 3,902 | 904 |
| EBITDA | 399 | 565 | 2,372 | 483 |
| EBITDA Margin (%) | 34.9% | 21.7% | 60.8% | 53.4% |
| PAT (Reported) | 458 | (799) | 1,826 | 379 |
| Adj. PAT (Excl. Exceptional) | 458 | 534 | 1,824 | 378 |
| ROE (%) | 13.8% | 21.0% | 37.6% | 25.2% |
| ROCE (%) | 15.3% | 28.8% | 49.7% | 33.7% |
| EPS (₹) | 0.7 | 0.9 | 3.0 | 0.6 |
Valuation
At the upper price band of ₹100, Groww is valued at 33.8x FY25 EPS and ~23.5x EV/EBITDA, significantly above sector averages. Despite its leadership, scalability, and profitability, these multiples imply that most near-term growth is already factored into the price.
Compared to listed peers, valuations appear stretched, especially considering cyclicality in retail market volumes and rising customer acquisition costs.
Peer Comparison Analysis (Key Performance Indicators – FY25)
| KPI | Billionbrains Garage Ventures (Groww) | Angel One Ltd | Motilal Oswal Financial Services Ltd |
| EBITDA Margin (%) | 60.8 | 37.9 | 54.5 |
| PAT Margin (%) | 46.8 | 21.5 | 30.0 |
| ROE (%) | 37.6 | 20.0 | 22.6 |
| ROCE (%) | 49.7 | 33.6 | 40.8 |
| P/E (x) | 33.8 | 20.2 | 23.5 |
| EV/EBITDA (x) | 23.5 | 5.5 | 10.6 |
Commentary:
Groww’s profitability and return ratios surpass peers due to its asset-light model and tech-driven scalability. However, the valuation premium remains substantial, limiting upside potential when compared with established listed brokers.
Recommendation
Billionbrains Garage Ventures Ltd (Groww) enjoys market leadership in India’s digital investing ecosystem, supported by a scalable tech-driven platform, strong profitability, and high customer engagement. The company’s long-term growth prospects remain robust, backed by rising retail participation and digital adoption.
However, at current valuations, the issue appears expensive, offering limited near-term upside. One of the key risks remains potential regulatory changes in F&O trading, which could significantly disrupt retail activity — a major revenue contributor for the platform.