Microsoft CEO-backed Groww picks banks for India IPO, at up to $8 bn valuation

By Baiju Kalesh

Billionbrains Garage Ventures Pvt. Ltd. has picked banks including JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd. for a potential Mumbai initial public offering, according to people familiar with the matter.

The company behind financial services platform Groww Invest Tech Pvt. Ltd. could proceed with an IPO this year, the people said, seizing on the momentum for share sales in India. The IPO could raise $750 million or more and Billionbrains Garage may seek a valuation of $7 billion to $8 billion, the people said, asking not to be identified because the information is private.

Considerations are preliminary and details such as size and timing could change, the people said. More banks may also be added to help arrange the deal, they said.

Representatives for Billionbrains Garage and JPMorgan declined to comment. Kotak didn’t immediately respond to a request for comment.

Billionbrains Garage’s Groww was founded in 2016 by four Flipkart colleagues. It aims to facilitate investing in financial products and has more than 50 million customers, with backers including Microsoft Corp. Chief Executive Officer Satya Nadella, Peak XV Partners, formerly known as Sequoia Capital India & Southeast Asia, Ribbit Capital and Tiger Global, its website shows.

Rating agency ICRA Ltd. has said Bengaluru-based investment firm Billionbrains Garage benefits from Groww’s strong market position and emergence as one of the leading discount brokers in India, bringing in numerous clients since 2022 as the retail investor base expands.

More than $20 billion was raised in Indian IPOs last year, including a record-breaking listing by Hyundai Motor Co.’s local unit, making it the world’s second-busiest market after the US. LG Electronics Inc. is also considering an IPO for its India unit, while Apollo Global Management Inc. may list auto-parts supplier Tenneco Inc.’s India business, Bloomberg News reported last week.