Groww is planning for an IPO, targeting a 10–15% equity dilution, despite facing regulatory headwinds in the broking industry due to SEBI clampdowns and higher taxes.
Amidst seeking a $7 billion post-money valuation and participation from sovereign investors like GIC, Groww's valuation is being questioned by some investors due to recent regulatory changes impacting F&O trading.
Compared to industry peers like Zerodha and Angel One, Groww's valuation appears ambitious but is justified based on its tech-first approach, customer growth, profitability, and revenue surge.
The upcoming Groww IPO will shed light on important aspects like segmental revenue breakdown, unit economics, growth plans, and the impact of SEBI's F&O rules, which will influence investor sentiment towards the company.