By Haripriya Suresh and Ashwin Manikandan
BENGALURU/MUMBAI (Reuters) -Indian stock broking platform Groww is betting on wealth management and commodities trading to drive revenue growth, co-founder and Chief Operating Officer Harsh Jain told Reuters on Tuesday, as its $754 million initial public offering opened for public subscription.
Groww is targeting a valuation of about $7 billion in its IPO and aims to raise $127 million by issuing new shares.
The offering, among India’s largest this year, taps a surge of first-time investors drawn to the country’s under-penetrated capital markets, helped by rising financial literacy, digital onboarding and low-cost trading.
Groww’s listing is the latest in India’s red-hot IPO market, which has emerged as the third-largest IPO venue globally this year with fundraising expected to top 2024’s record $20.5 billion.
Jain said as customers grow more affluent, they move beyond stocks and mutual funds into bonds and commodities, driving demand for broader financial products. While broking remains Groww’s main revenue source, its share is declining as newer businesses scale up.
Broking accounted for 79.5% of Groww’s revenue in the quarter ending June 2025, down from 87.4% a year earlier, according to its updated IPO prospectus.
Groww, which competes with Zerodha and Angel One, launched commodities trading, corporate bonds, margin trading facilities (MTF) and a wealth platform called “W” this year as part of its diversification strategy. MTF allows investors to borrow funds from brokers to buy stocks, using existing holdings or cash as collateral.
“In MTF, we have less than 1.5% market share, which is a growth area for the next few years. We launched commodities this quarter and we are seeing early adoption,” Jain said, adding that the new businesses “may take a larger share of revenue” in the next few years.
Groww’s lending arm, which recently began offering loans against shares, is expected to remain a small contributor, accounting for less than 10% of overall revenue.
(Reporting by Haripriya Suresh and Ashwin Manikandan; Editing by Dhanya Skariachan and Saumyadeb Chakrabarty)
