Urban Co. is said to plan launch of $217M India IPO next month

Urban Co. is said to plan launch of $217M India IPO next month

Stock-broking app Groww has received the market regulator’s approval to raise $800 million to $1 billion in an initial public offering (IPO) of shares, two people said. The Bengaluru-based investment platform had filed a confidential draft red herring prospectus with the Securities and Exchange Board of India (Sebi) on 26 May for its IPO [1].

The IPO plans come amid a broader slowdown for India’s leading discount brokerages, including Groww, Zerodha, Angel One, and Upstox. Together, these platforms lost nearly 2 million active investors in the first half of 2025, according to National Stock Exchange (NSE) data. June alone witnessed a net withdrawal of 600,000 clients from these platforms, underscoring a difficult six-month stretch shaped by regulatory headwinds and waning retail participation [1].

Since January, Groww has shed 600,000 clients, while market leader Zerodha saw 550,000 users exit. Angel One and Upstox also reported declines, losing 450,000 and just over 300,000 clients, respectively. This decline has coincided with a drop in retail interest in the derivatives market following Sebi’s curbs on trading in futures and options. Stricter margin rules, shorter contract expiries, tighter eligibility requirements, and higher taxes have collectively shifted the landscape away from casual traders [1].

Retail investors, often more sensitive to short-term gains and market stability, are beginning to pull back after an extended spell of speculative activity. India’s post-covid market rally had attracted millions of new individual investors, many enticed by the prospect of fast profits. But with stricter regulations, volatile expiry sessions, and muted near-term returns, a portion of this investor base seems to be stepping aside, at least temporarily [1].

Groww’s parent company, Billionbrains Garage Ventures Pvt. Ltd, has appointed JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd as the bankers for its initial public offering. The fintech startup’s IPO plans come after it completed raising $200 million at a $7 billion valuation in June, with investments from Singapore’s sovereign wealth fund GIC and existing backer Iconiq Capital [1].

The fintech startup’s profit jumped to ₹1,819 crore in 2024-25 from ₹545 crore in FY24, when it had to pay a one-time domicile tax of ₹1,340 crore. Revenue jumped 31% to ₹4,056 crore [1].

References:
[1] https://www.livemint.com/companies/start-ups/groww-sebi-nod-for-up-to-1-billion-ipo-11756391060895.html