Firm Overview
Billionbrains Storage Ventures Ltd (Groww) is India’s largest and fastest-growing digital funding platform, enabling clients to speculate straight in equities, mutual funds, derivatives, ETFs, bonds, and IPOs. Based in 2016 by former Flipkart executives, the corporate operates underneath a direct-to-customer (D2C) mannequin, specializing in simplicity, transparency, and accessibility.
As of June 2025, Groww had 12.6 million energetic customers on NSE, commanding a 26%+ market share, making it India’s main on-line brokerage by energetic shopper base. The platform has additionally constructed a sturdy presence in mutual fund distribution, with a 13% share of SIP inflows, up from 6% in June 2023.
Groww’s person base is predominantly younger and retail-focused, with round 81% customers outdoors the highest 6 cities and a median age of 31 years. Its in-house expertise stack, seamless onboarding, and intuitive interface have pushed excessive engagement — mirrored in a DAU/MAU ratio of ~55% in FY24 and ~56% in FY25.
The corporate’s operations are supported by subsidiaries engaged in margin buying and selling (GIT), shopper credit score (GCS), and expertise providers, forming a holistic wealth-tech ecosystem.
Promoters & Shareholding
| Shareholding | Pre-Problem | Submit-Problem |
| Promoter & Promoter Group | 28.3% | 27.8% |
| Public & Others | 71.7% | 72.2% |
| Complete | 100% | 100% |
Public Problem Particulars
- Problem Kind: Contemporary Problem + Supply for Sale
- Value Band: ₹95 – ₹100 per share
- Problem Dimension: ₹6,632 crore (Contemporary Problem ₹1,060 crore; OFS ₹5,572 crore)
- Face Worth: ₹2 per share
- Market Capitalisation (Submit-Problem): ₹58,702 – ₹61,736 crore
- Supply Interval: November 04 – November 07, 2025
- Itemizing Date: November 12, 2025
- Lot Dimension: 150 shares and multiples thereof
- E-book Working Lead Managers: Kotak Mahindra Capital, JP Morgan India, Citigroup International Markets India, Axis Capital, Motilal Oswal Funding Advisors
- Registrar: MUFG Intime India Pvt. Ltd.
- Problem Allocation: QIB 75%, NII 15%, Retail 10%
Objects of the Supply
| Objective | Estimated Utilisation (₹ crore) |
| Cloud Infrastructure Growth | 152.5 |
| Model Constructing & Efficiency Advertising and marketing | 225.0 |
| Capital Infusion into Subsidiary (GCS) | 205.0 |
| Funding MTF Enterprise (GIT) | 167.5 |
| Inorganic Development & Normal Company Functions | Stability (as much as 35% of gross proceeds) |
Execs
- Market Management: India’s largest retail broking platform with 26%+ market share.
- Numerous Product Suite: Built-in funding ecosystem throughout equities, MFs, credit score, and MTF.
- Expertise Spine: Absolutely in-house tech stack making certain scalability and decrease marginal value.
- Sturdy Person Engagement: DAU/MAU ratio >55% and ~89% retention for multi-product customers.
- Excessive Development: Income CAGR of ~85% and PAT CAGR of ~100% over FY23–25.
- Widening Buyer Attain: 81% of energetic customers from Tier-2 and Tier-3 areas.
Dangers
- Costly Valuation: Excessive implied P/E (33.8x FY25) and EV/EBITDA (23.5x) relative to friends.
- Market Dependency: Income closely linked to market turnover and retail participation.
- Regulatory Publicity: Topic to SEBI and RBI compliance for broking and NBFC actions.
- Operational Threat: Any disruption within the digital platform may considerably have an effect on enterprise continuity.
- Aggressive Depth: Fierce rivalry with different digital brokers could compress margins.
Trade Outlook
The Indian capital markets and wealth administration business are in a structural upcycle, aided by rising financialisation, digital penetration, and first-time traders. The broking sector is anticipated to develop at a 14–16% CAGR throughout FY25–30, pushed by continued retail participation, product diversification, and enlargement into credit-linked providers.
Nonetheless, the area is turning into more and more aggressive, with established brokers investing in expertise and newer entrants providing low cost pricing, probably limiting margin enlargement.
Monetary Snapshot (₹ Crores)
| Particulars | FY23 | FY24 | FY25 | 1QFY26 |
| Income 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. Distinctive) | 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
On the higher value band of ₹100, Groww is valued at 33.8x FY25 EPS and ~23.5x EV/EBITDA, considerably above sector averages. Regardless of its management, scalability, and profitability, these multiples indicate that almost all near-term progress is already factored into the worth.
In comparison with listed friends, valuations seem stretched, particularly contemplating cyclicality in retail market volumes and rising buyer acquisition prices.
Peer Comparability Evaluation (Key Efficiency Indicators – FY25)
| KPI | Billionbrains Storage Ventures (Groww) | Angel One Ltd | Motilal Oswal Monetary Companies 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 friends attributable to its asset-light mannequin and tech-driven scalability. Nonetheless, the valuation premium stays substantial, limiting upside potential when put next with established listed brokers.
Suggestion
Billionbrains Storage Ventures Ltd (Groww) enjoys market management in India’s digital investing ecosystem, supported by a scalable tech-driven platform, sturdy profitability, and excessive buyer engagement. The corporate’s long-term progress prospects stay sturdy, backed by rising retail participation and digital adoption.
Nonetheless, at present valuations, the problem seems costly, providing restricted near-term upside. One of many key dangers stays potential regulatory modifications in F&O buying and selling, which may considerably disrupt retail exercise — a serious income contributor for the platform.
Whereas the basics and enterprise high quality are sturdy, we imagine valuation consolation could emerge publish itemizing.
Closing Suggestion: Keep away from at IPO Value; Think about Shopping for on Dips Submit Itemizing
