GIC Seeks CCI Approval To Acquire 2.14% Stake In IPO-Bound Groww

Singapore’s sovereign wealth fund GIC has sought the Competition Commission of India’s (CCI) approval to acquire over 2% stake in IPO-bound investment tech unicorn Groww. 

As per a notice submitted to the regulator, GIC’s Viggo Investment Pte. Ltd. intends to acquire a 2.143% stake in Groww’s parent Billionbrains Garage Ventures.

“The proposed combination relates to the acquisition of 2.143% shareholding in Groww by the GIC investor pursuant to the execution of, inter alia, a deed of adherence and share subscription agreement on 28 April 2025,” the application read. 

This comes a few months after reports said that Groww was in advanced talks with GIC and existing backer Tiger Global to raise a mega funding round ahead of its initial public offering (IPO). At the time, the Bengaluru-based startup was said to be looking to raise $200 Mn at a likely valuation of around $6.5 Bn.

Founded in 2017 by Lalit Keshre, Neeraj Singh and Ishan Bansal, Groww is an online discount broking platform that allows users to invest in stocks, exchange-traded funds (ETFs), IPOs. It also operates an asset management company. Groww counts Tiger Global, Peak XV, Propel Venture Partners, ICONIQ Growth and Y Combinator among its backers.

Groww’s IPO Rush

The fundraise comes at a time when the investment tech platform is eyeing a public listing on Indian bourses by the end of the ongoing fiscal year (FY26). Groww has roped in bankers like JPMorgan Chase & Co. and Kotak Mahindra Bank for its proposed public issue. 

As per previous reports in January, Groww was looking to file its draft red herring prospectus (DRHP) with market regulator SEBI by May for a $1 Bn IPO. Groww’s IPO is expected to largely comprise an offer-for-sale (OFS) component and will have a small fresh issue. 

On the financial front, Groww reported a net loss of INR 805 Cr in the financial year ending March 31, 2024 (FY24) against a net profit of INR 448.7 Cr in the previous fiscal year.

However, the startup maintained an operational profitability of INR 535 Cr for FY24. It ended in loss for the period under review primarily because of INR 1,340 Cr in tax that the company paid to the US government for shifting its domicile back to India. 

It is pertinent to note that Groww shifted its domicile to India in March last year as part of its plans to list on domestic exchanges. 

Groww Settling Cases With SEBI 

Ahead of the IPO, Groww seems to be on a spree to settle its ongoing cases with markets regulator SEBI. Earlier in the day, it was reported that Groww paid INR 47.85 Lakh to settle a case with SEBI pertaining to violation of stock brokers’ regulations and failure to conduct client due diligence. 

SEBI had alleged that Groww violated multiple norms of the securities contract regulations, several SEBI circulars and stock brokers regulations. The markets watchdog also alleged that Groww was offering non-securities services such as UPI payments, lending and bill payments via its trading app, which could have exposed users to personal financial liability.

This came a couple of days after Groww settled another case pertaining to technical glitches with SEBI by paying INR 34.1 Lakh. The case originated from a technical glitch that Groww’s brokerage platform faced on January 23, 2024. In a showcause notice sent to the startup, SEBI alleged that the platform did not publish “full and true disclosure” on time to the exchange on LAMA. 

Log Analytics and Monitoring Application (LAMA) is a framework launched by the SEBI to address “technical glitches” in stockbroker’s electronic trading systems.

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