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Market News - June 14, 2025

Groww Achieves Significant Profit Surge in FY25, Gears Up for IPO Launch

Groww Achieves Significant Profit Surge in FY25, Gears Up for IPO Launch

Groww, one of India’s leading investment platforms, has reported a remarkable financial turnaround in the fiscal year 2025, registering a significant increase in profitability and cementing its position in the rapidly evolving Indian fintech space. The company achieved a net profit of ₹1,819 crore in FY25, a dramatic improvement compared to the net loss it posted in the previous financial year.

This exceptional growth comes at a time when the investment landscape in India is becoming increasingly competitive, with more individuals actively participating in stock markets and mutual funds. Groww’s sharp profitability jump not only highlights its effective cost management and strong revenue streams but also showcases the platform’s ability to scale sustainably in the long term.

Strong Revenue Growth Drives Profitability

Groww’s total revenue for FY25 climbed to ₹4,056 crore, representing a 31% year-on-year increase. This significant revenue growth has been driven by a combination of factors, including the rise in the number of active users, improved transaction volumes, and increased interest in equity investments across the country.

Over the past few years, Groww has successfully expanded its offerings beyond mutual funds, venturing into stockbroking, digital gold, and other wealth management products. The company’s diversification strategy has played a crucial role in boosting revenue and attracting a wider customer base.

Additionally, the fintech firm has been focusing on enhancing its user experience through technological upgrades, seamless onboarding processes, and a transparent fee structure, which has contributed to a loyal and growing user community.

A Shift from Loss to Profit

In FY24, Groww reported a net loss of ₹805 crore, largely due to a one-time deferred tax adjustment. However, the company has made a striking recovery in FY25, moving from red to black in a single financial year.

This shift has been supported by prudent financial management and an efficient scaling of operations. Groww’s ability to control costs while significantly increasing revenues indicates a maturing business model that is moving beyond its early-stage growth challenges.

The company’s rising profitability is also likely to boost investor confidence as it plans for the next phase of expansion.

Successful Funding and IPO Ambitions

Groww has strengthened its standing in the fintech market after successfully raising $200 million in its latest funding round, increasing the company’s valuation to close to $7 billion. This investment was primarily led by GIC, Singapore’s sovereign wealth fund, along with additional backing from Iconiq Capital and several of the company’s current investors.

The fresh capital infusion will be instrumental in supporting Groww’s growth strategy, including investments in technology, customer acquisition, and new product development. It also signals continued investor trust in the company’s vision and execution capabilities.

Importantly, Groww has also submitted confidential draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company reportedly aims to raise between $700 million to $1 billion through the public listing. The IPO is expected to not only provide liquidity to existing investors but also offer the company additional capital to pursue future expansion aggressively.

Market Leadership and Competitive Edge

Groww’s fast-paced expansion has helped it become the leading stockbroker in India based on the number of active users. It now boasts over 13 million active investors, outpacing its closest competitors like Zerodha, which has about 8 million active users, and Angel One, with around 7.7 million.

The company’s appeal lies in its simple, mobile-first investment interface, which caters especially to young, first-time investors in India’s smaller cities and towns. By making investing accessible and easy to understand, Groww has tapped into a large and previously underserved demographic.

Moreover, the company has recently expanded into complementary areas such as digital lending and wealth advisory services. Groww’s acquisition of the wealth-tech firm Fisdom, valued at nearly $150 million, is anticipated to strengthen its financial advisory services and broaden its revenue streams.

Outlook for the Future

With strong financials, aggressive expansion plans, and a growing customer base, Groww is well-positioned to continue its upward trajectory. The upcoming IPO is likely to further accelerate its growth, enabling the company to invest in product innovation and geographical expansion.

The Indian fintech sector is becoming increasingly crowded, with established players and new entrants vying for market share. However, Groww’s focus on simplicity, transparency, and customer-centric solutions gives it a competitive edge.

As India’s appetite for equity investing and digital financial services continues to grow, Groww appears set to play a pivotal role in shaping the future of retail investing in the country.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Asian Paints Shares Dip After Reliance Offloads Stake

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Equity Right
Business - May 9, 2020

Startups offer Esops to help employees

Startups offer Esops to help employees

Incidental to economic distress invited by COVID-19, some of India’s top startups are rendering additional stock options to their employees in order to retain them even after having performed reduction in salaries mandatorily or voluntarily both. Among others, one is Zomato, a well known food delivery chain. Other is “On Your Own Rooms” popularly known as the Oyo Rooms, next is Grofers, the grocery delivery startup, Bounce, known for offering dock-less scooters enhancing mobility, Paytm an e-commerce payment and shopping application.

Zomato was seen initiating a voluntary salary reduction scheme in April, offering those employees add on stocks in order to compensate their decreased pay cheques. According to the estimates, around 2,700 employees undertook voluntary pay cuts empathizing with the company’s situation.

 

Why Esops?

This decision is a rational one. Companies resorting to pay cuts will not remain appealing to employees who previously worked on high salaries, retaining the talent is a skill, during these tough situations, Esop can be the best possible option to engage employees if not for life but at least for a fixed tenure. According to the sources, Zomato is already having pool of untouched shares with it which they can now use to offer its employees. While others are managing from their founder’s holding in the organizations.

Grofers is backed by Soft Bank, helping it to increase the Esop pool. It is planning to enhance pool by an addition of $25 million, summing up to make it raise $60-70 million. Further, Paytm, Zomato and Oyo are known to have Esop pools ranging around 2.6% – 5.5% of their overall shareholding.

The companies are still deciding as to what ratio of compensation will be granted and what can be the best articulated Esop plan that they can come up with, for instance lower price or shorter lock-in periods since they are being issued in compensation to liquid cash. Paytm, has earlier announced that it is willing to offer Esop linked appraisal scheme this year. For which, it will keep aside Rs 250 crore in Esops to be offered to the target achievers, sincere and honest employees, high performers and fresh joinees of their organization.

 

 

SBI CARDS Q4FY20 Result Highlights

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India's Insurance Sector Booms Amid Rising Demand
Business, Economy - April 30, 2020

Industry bodies urge government to create fund for startups

Industry bodies urge government to create fund for startups

 

In January 2016, Start-Up India initiative was launched by the government of India to encourage young entrepreneurs in the country. The main objective of this initiative is to transform India into a Start-up nation. India is a highly diverse country with 28 states and 8 union territories. This diversity has the aid to build opportunities to cross learn from each other. Now, there are more than 14,600 start-ups in the country with 231 angel investors and 8 angel networks. India is now the 3rd largest unicorn community and has 16 high valued start-up companies. This community has an overall valuation of $58 billion. They have raised more than $17.27 billion funds.

Government measures:

Various measures are taken to encourage the entrepreneurs like reduction in patent registration fees, improved bankruptcy code to ensure 90 day exit window, freedom from inspection and tax for first 3 years, schemes to provide IPR protection to start-ups.

Start-up association of India:

Start-up association of India asked the government to create 25,000 crore funds and keep the start-up India fund as a priority as liquidity crisis may arise due to the COVID-19 pandemic. This start-up industry was founded in 2017 altogether by the entrepreneurs to help start-ups in India in all the sectors and stages of maturity. This association connect start-up to the policy makers and investors so that broad network is created. Due to the COVID-19 pandemic, start-ups play a vital role especially tech start-ups. Since digital platforms are used for all purposes they play an important role.

The association includes top entrepreneurs of India Mart, Make My Trip, Info Edge and Venture Gurukool. They collectively suggested that funds can be registered as an Alternative Investment category-II Fund, with the National Investment and Infrastructure Fund, managed by professional fund managers. They also said that 10,000 crore funds which is under SIDBI, can be allocated for the start-ups.

Why fund is required?

Recently because of the COVID-19 breakdown, whole country has been affected socially and economically. This breakdown has directly affected the start-ups too as start-up companies are most vulnerable. Other reasons like sudden decline in productivity, supply chain breakdown, closing down the premises have also affected the performance of start-ups. On the other side, government is also taking measures to help start-ups such as extending the period for paying taxes, allocating the funds for labourers and workers. Not just the government but private companies have also taken initiative.

Facebook announced to offer $100 million in cash as well as credit to small businesses where Facebook operates. Citibank has offered assistance to the small businesses by waiving their fees and penalties. Many tech companies are also playing a major role as due to the lock down, digital platform are the ultimate saviors for the country. Tech companies like Microsoft, Google, Zoom and Cisco have offered their services for free to businesses conducting meeting, conferences online.

 

 

Just dial announces buyback of shares

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