

Highlights
| Issue Size – 66,32,30,051 shares | Issue Open/Close – 4 Nov / 7 Nov, 2025 |
| Price Band (Rs.) 95 – 100 | Issue Size (Rs.) – 66,323 mn |
| Face Value (Rs) – 2 | Lot Size (shares) 150 |
Billionbrains Garage Ventures Limited (Groww) incorporated in 2018, is direct-to-customer digital investment platform that provides wealth creation opportunities to customers through multiple financial products and services. With Groww, customers can invest and trade in stocks (including via IPOs), derivatives, bonds, mutual funds (including Groww Mutual Fund) and other products.
Groww categorize their products into: (i) Broking services which includes Stocks and Derivatives; and (ii) Others which includes Mutual Funds, MTF, Credit and Groww AMC and their revenue includes (i) Fees and commission income and (ii) Interest income.
Out of the total proceeds of approximately Rs. 66,323 mn, ~Rs. 1,525 mn would be utlizied for expenditure towards cloud infrastructure. ~Rs. 2,250 mn would go towards brand building and performance marketing activities. ~Rs. 3,725 mn would go towards investments in subsidiaries. ~Rs. 3,100 mn would go towards funding inorganic growth through unidentified acquisitions and general corporate purposes and ~Rs. 55,723 would go towards existing selling shareholders of the company.
Key Highlights
- India’s the total addressable market for Investment & Wealth Management sector is Rs. 1.1 trillion as of FY25 and is expected to grow to approximately to Rs. 2.2-Rs. 2.6 trillion by FY30, at a CAGR of 15-17 pct until FY30. This market growth is driven by higher investor participation, growing disposable income and higher investible funds.
- Groww has built most of their technology in-house. Doing so helps them deliver a better experience to customers; Their systems have the bandwidth to handle approximately 50 mn users simultaneously and execute approximately 50 mn orders per day. With systems and infrastructure customized for their operations, they are able to react to changes quickly.
- Groww classify their customers based on their total assets invested with them or tracked on their platform. Customers with total assets of less than Rs. 2.5 mn are classified as Aspirational Users, while customers with total assets of Rs. 2.5 mn+, at any point in time on their platform, are classified as Affluent Users. Typically, the company generate higher Annual Average Revenue Per User (AARPU) from Affluent Users.
- In October 2024, the company increased brokerage and other fees for Stocks including introduction of a minimum transaction fee, but witnessed negligible impact on customer acquisition and investing/ trading activity.
- Customer first principal helps Groww to achieve high customer engagement and retention, and accelerated adoption of various investment products and services. This results in increased revenue per customer at low cost, thereby expanding contribution margin. Additionally, through an asset-light approach, they have been able to convert profit into free cash which they can reinvest into business, develop or expand products and services, or for customer acquisition.
- Groww’s key strategies include (i) Continue to strengthen brand (ii) Launch more products and services for both affluent and aspirational customers (iii) Invest in technology (iv) Pursue strategic acquisitions and investments.
- Sales of the company has grown by 84.9 pct CAGR over FY23-25 and adjusted EBITDA and profit grew by 135.4 pct CAGR and 99.6 pct over same period. During FY25 the sales of the company grew by 49.5 pct YoY to Rs. 39,017 mn. While adjusted EBITDA of the company increased by 56.8 pct YoY to Rs. 23,064 mn and adjusted EBITDA margin expanded by 270 bps YoY to 59.1 pct in FY25. During FY25, the company posted profit of Rs. 18,244 mn against loss of Rs. 8,054 mn in FY24. The loss in FY24 is due to one time performance-based incentive of Rs. 7,786 mn paid to management and a long-term incentive of Rs. 1,062 mn as per long term incentive plan established for the management in FY24 and one time tax expenses of Rs. 13,396 mn due to US Outbound merger Tax.
Key Risk
- Any downturn or disruption of the financial markets, may have a material adverse effect on Groww business.
- Changing laws, rules and regulations by regulators may affect Groww business, prospects and results of operations.
- The company is exposed to risks related to their MTF product. A significant decrease in liquidity could negatively affect their business and reduce customer confidence.
- The company is exposed to working capital risks, particularly during periods of elevated customer activity and market volatility. Any failure in arranging adequate working capital for their operations may affect their business and reputation.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | Q1FY25 | Q1FY26 |
| Sales (Rs. mn) | 11,415 | 26,093 | 39,017 | 10,008 | 9,044 |
| Contribution Margin (Rs. mn) | 9,606 | 22,818 | 33,313 | 8,784 | 7,706 |
| Contribution Margin (%) | 84.2% | 87.5% | 85.4% | 87.8% | 85.2% |
| EBITDA (Rs. mn) | 3,988 | -7,809 | 23,710 | 4,188 | 4,827 |
| EBITDA Margin (%) | 34.9% | -29.9% | 60.8% | 41.8% | 53.4% |
| Adj EBITDA (Rs. mn) | 4,163 | 14,709 | 23,064 | 5,837 | 5,072 |
| Adj EBITDA Margin (%) | 36.5% | 56.4% | 59.1% | 58.3% | 56.1% |
| Profit/(loss) (Rs. mn) | 4,577 | -8,055 | 18,244 | 3,380 | 3,784 |
| Profit/(loss) Margin (%) | 36.3% | -28.8% | 44.9% | 32.3% | 39.9% |
Peer Comparison based on FY25 Financials
| Particulars | Groww | Angel One | Motilal Oswal |
| NSE Active Clients (mn) | 12.92 | 7.58 | 1.01 |
| Sales (Rs. mn) | 39,017 | 52,384 | 83,391 |
| Contribution Margin (Rs. mn) | 33,313 | 19,155 | N.A. |
| Contribution Margin (%) | 85.4% | 46.4% | N.A. |
| EBITDA (Rs. mn) | 23,710 | 32,560 | 25,081 |
| EBITDA Margin (%) | 60.8% | 62.2% | 30.1% |
| Profit/(loss) (Rs. mn) | 18,244 | 11,721 | 25,081 |
| Profit/(loss) Margin (%) | 44.9% | 22.3% | 29.8% |
Valuation
Billionbrains Garage Ventures Limited (Groww) is gaining market share by diversifying into different product categories and leveraging its technological capabilities to scale the business efficiently. Its high customer retention, strong engagement, and price inelasticity, combined with an in-house technology stack that provides a differentiated experience at low cost, have enabled Groww to achieve both growth and profitability. At the upper end of the price of Rs. 100, the issue quotes PE of 40.8x on FY26E post issue annualized earnings. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
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