Groww, supported by Satya Nadella, should become the first Indian startup to become public after the American move

Groww, the largest retail brokerage in India, is expected to test the country’s public procurement with a fellowship of several billion dollars. The announcement comes a little more than a year after the company restructured its registered office of Delaware in India – a decision that could make it the first Indian startup to be included after a relocation of the United States

Supported by the CEO of Microsoft Satya Nadella and brand investors, in particular Y combinator, Ribbit Capital and Tiger Global, the Groww list – expected later this year – should be doubled as a major exit optility for world venture capital funds. The three investment companies discharge approximately 236 million shares – approximately 5.6% of the Groww equity base – according to the IPO documents project submitted on Tuesday. This makes it the largest sales block, representing around 41% of all the actions offered to the public.

Pine Labs, Razorpay, Meesho and Zepto are among the Indian startups that have recently transferred their base to them. Phone -Dos in Walmart moved its headquarters from Singapore to India in 2022, while Flipkart – once its parent and also supported by Walmart – also announced its intention to move its headquarters from Singapore to India earlier this year.

Last year, Groww became one of the first startups to present its headquarters in India from the United States, the startup paid around $ 159 million in taxes as part of this decision.

The move of their base at home helps startups to align themselves with the evolution of local regulations and to meet the requirements for national stock lists. It is also logical to exploit public procurement of India, given the expansion retail investors and the growing appetite for the IPO. The trend reflects the growing maturity and attractiveness of the capital markets of India compared to alternatives abroad.

While American investors plan to unload a large part of their participations in Groww, the founders Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal together only sell 4 million shares – only 0.7% of the total supply to sell, according to the prospectus project.

The small sale indicates that the founders of Groww retain almost all their equity, unlike established investors who use the IPO as a way of exit.

Groww plans to raise 10.6 billion pounds Sterling (approximately $ 121 million) of new funds from the IPO, as well as the secondary sale of 574 million shares per existing shareholders, which should be evaluated from $ 5 to 6 billion (around 568 to $ 682 million). The IPO should enhance the company based in Bengaluru at $ 9 billion.

During the financial year ending on March 31, Groww declared a total income of 40.6 billion pounds Sterling (approximately $ 462 million), up 45% in annual shift, with a profit after tax of $ 18.2 billion (approximately $ 208 million). The startup had displayed a net loss of around $ 8 billion (around $ 92 million) the previous year, mainly due to the expenses linked to the relocation of the Delaware headquarters.

In June, Groww had approximately 37.4 million individuals with individuals (digital accounts that have electronic securities), representing almost 19% of the India market, as well as 12.6 million customers active on the National Stock Exchange, equal to a share of 26%. The platform also included around 17 million active systematic investment plans (SIPS, which are recurring monthly investments) and 9 million unique investors of placement funds, becoming the only investment application in the country to exceed 100 million cumulative downloads.

The offer is informed by Jpmorgan Chase, Kotak Mahindra Bank, Citigroup, Axis Bank and Motilal Oswal Investment Advisors.