Satya Nadella-backed Groww becomes first Indian startup to return from U.S. and go public
The Bengaluru-based firm shifted its base from Delaware to India just over a year ago, paying about $159 million in taxes as part of the restructuring.
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Groww, India’s largest retail brokerage platform, is set to test the country’s public markets with a multi-billion-dollar initial public offering (IPO), making it the first Indian startup to list domestically after relocating its corporate headquarters from the United States.
The Bengaluru-based firm shifted its base from Delaware to India just over a year ago, paying about $159 million in taxes as part of the restructuring. The move positions Groww to tap into India’s expanding retail investor base while aligning with local regulatory requirements, as reported by TechCrunch.
The company, backed by Microsoft chief executive Satya Nadella alongside marquee investors such as Peak XV Partners, Y Combinator, Ribbit Capital and Tiger Global, plans to raise ₹10.6 billion (approximately $121 million) in fresh funding through the IPO. In addition, a secondary sale of 574 million shares by existing investors is expected to fetch between ₹5–6 billion ($568–$682 million). Together, the offering is projected to value Groww at $9 billion.
According to draft IPO papers filed on Tuesday, four major investors — Peak XV, Y Combinator, Ribbit Capital and Tiger Global — are divesting around 394 million shares, or 9.4% of Groww’s equity base, representing nearly 69% of all shares offered to the public. By contrast, founders Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal will sell only about 4 million shares, less than 1% of the total offer, signalling their intent to retain significant stakes.
Groww’s move follows a broader trend of Indian startups shifting headquarters back to India. Payments firms Pine Labs, Razorpay, Meesho and Zepto have all made similar decisions, while Walmart-backed PhonePe relocated from Singapore in 2022. Flipkart, also backed by Walmart, announced plans earlier this year to move its headquarters from Singapore to India.
For Groww, the IPO marks a sharp turnaround in its financial trajectory. In the fiscal year ending March 31, the company reported ₹40.6 billion ($462 million) in total income, a 45% year-on-year rise, and a net profit of ₹18.2 billion ($208 million). This contrasts with a loss of around ₹8 billion ($92 million) the previous year, attributed largely to costs tied to the Delaware-to-India move.
As of June, Groww managed about 37.4 million demat accounts, representing 19% of India’s market, and 12.6 million active clients on the National Stock Exchange, equal to a 26% share. It also counted 17 million active systematic investment plans (SIPs) and 9 million unique mutual fund investors, making it the only investment app in India to surpass 100 million cumulative downloads.
The IPO is being advised by JPMorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank and Motilal Oswal Investment Advisors.
