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Soon-to-be-listed popular investment platform Groww will utilise its IPO proceeds mainly on four things - technology investments, brand enhancement, capital for newly launched margin trade funding, and capitalization of its NBFC business through loan against securities, Ishan Bansal, Whole-Time Director and Chief Financial Officer of Billionbrains Garage Ventures Limited, the parent company, said.
"There are four places under which the utilization of these (IPO) funds will happen. One of them is technology, where we've been investing continuously. Second is brand, that is really important for us," Bansal told ANI. "Third is we've been launching, we have just launched margin trade funding. So, we need capital. And the fourth thing is on the loan against securities. That's, another product that we have just launched, where we need capital to capitalize our NBFC business," he added. Expanding on its business and revenue streams, he said broking is one of the largest business today and roughly 85 per cent the revenue comes from it. Rest 15 per cent is mostly interest-related income. "Part of that comes from our NBFC business, which is around 8-9 per cent. And rest is other income for us," he explained. "I think this will change over a period of time. MTF is something that has started scaling really well, and it will start contributing significant part of our revenue soon," he asserted, hoping for a steady rise in non-broking revenue. He asserted that along with broking business of Groww, rest of the businesses are growing even faster. Asked about future goals, he was tight-lipped. "I can't give a forward looking statement, but I can tell you that we still are underpenetrated on many products. Hence we are confident that we will be able to deliver higher returns or higher growth than the market. We need to realize that our business is market dependent. It's a capital markets business and there will be a dependency on how the market performs, but we will do better than the market," he said. "That is what we are able to deliver because of our underpenetration on market share perspective on new products and gain of market share across different segments." Although derivatives growth is slower due to regulations, the company remains confident in outperforming market growth due to underpenetrated products and gaining market share. On the derivatives business, he noted that, "Derivatives is probably growing lesser, primarily because of the regulations. But obviously still there is some growth there as well." Billionbrains Garage Ventures Limited, the parent company of investment platform Groww, will open its initial public offering (IPO) on Tuesday, November 4, 2025. The company has set a price band of Rs 95 to Rs 100 per equity share for the offer. Bids can be made for a minimum of 150 equity shares and in multiples of 150 thereafter. The IPO consists of a fresh issue of shares worth Rs 10,600 million and an offer for sale of up to 557,230,051 equity shares. The anchor investor bidding is scheduled for Monday, November 3, 2025, and the public issue will close on Friday, November 7, 2025. (ANI)
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