Singapore’s GIC Seeks CCI Approval to Acquire 2.14% Stake in Groww
Singapore’s sovereign wealth fund, GIC, through its subsidiary Viggo Investment Pte. Ltd., has applied for approval from the Competition Commission of India (CCI) to acquire a 2.143% stake in the Indian fintech unicorn, Groww. This move aligns with Groww’s ongoing efforts to bolster its financial position ahead of a planned Initial Public Offering (IPO).
Groww’s Pre-IPO Fundraising Efforts
Groww is actively seeking to raise approximately $200 million in a pre-IPO funding round, aiming for a valuation between $6.5 billion and $7 billion. The Bengaluru-based stockbroking platform was last valued at around $3 billion following a $251 million Series E funding round in October 2021. Since its inception, Groww has secured close to $400 million from prominent investors, including Peak XV, Tiger Global, Ribbit Capital, and YC Continuity.
Regulatory Approvals and Corporate Restructuring
In preparation for its IPO, Groww has undertaken significant corporate restructuring. The company recently received CCI approval to issue bonus shares to existing investors and to eliminate special rights previously held by its founders. These steps are part of Groww’s broader strategy to streamline its corporate governance structure and enhance transparency ahead of going public.
Financial Performance and Market Position
Groww’s revenue from operations surged to ₹3,145 crore in the fiscal year 2024. Despite this impressive topline growth, the company reported a net loss of ₹805 crore for the same period. This loss was primarily due to a one-time tax expense of ₹1,340 crore incurred during the relocation of its domicile from the United States to India—a strategic move aimed at aligning the company’s operations with its primary market.
The fintech firm has also experienced substantial growth in its user base, boasting over 13 million active users as of December 2024. This positions Groww ahead of competitors like Zerodha and Angel One, which reported 8.1 million and 7.8 million active users, respectively.
The Broader Fintech IPO Landscape
Groww’s IPO plans are part of a larger trend among Indian fintech companies seeking to go public. Companies like Paytm and MobiKwik have already listed, while others such as Pine Labs and PayU are anticipated to launch their IPOs by the end of the current fiscal year. Notably, Razorpay has also transitioned into a public entity, signaling its intent to enter the public markets in the near future.
Implications for the Indian Fintech Sector
GIC’s proposed investment in Groww underscores the growing confidence of global investors in India’s fintech sector. As these companies mature and seek public listings, they are likely to attract further international investment, contributing to the sector’s dynamism and growth.
For investors and market observers, Groww’s journey offers valuable insights into the evolving landscape of Indian fintech and the strategic maneuvers companies are employing to capitalize on emerging opportunities.
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