Groww eyes faster scale-up in new verticals after turning profitable

Fintech platform Groww is eyeing steady profitability and annual revenue growth of 25–30%, driven by both customer acquisition and higher revenue per user (ARPU) going forward. Ishan Bansal, Whole-Time Director and Chief Financial Officer at Billionbrains Garage Ventures Limited, the parent company of Groww, said the firm returned to profitability in FY25, supported by robust revenue growth and operational efficiency.“We are highly profitable. We are roughly at a 45% profit margin, and we think if we can keep on growing our revenue, we can even increase this percentage further,” he said.

Read Here | Groww IPO opens today: Should you subscribe to the ₹6,632 crore issue?

On the business mix, Bansal said brokerage remains the largest contributor, accounting for about 83% of revenue in the first quarter. However, its share is expected to decline as new verticals like margin trading (MTF), commodities, and lending scale up. “Every product that we launch is able to scale much faster, and hence our revenue growth has an extra lever with every new product,” he said.
The MTF business is expected to be the fastest-growing in the near term. The company’s MTF book currently stands at around ₹1,000 crore.The wealth management business, strengthened by the recent acquisition of Fisdom, contributes about 3–4% of revenue and is expected to grow rapidly. The company already serves roughly three lakh affluent customers on its platform, providing cross-selling opportunities for new wealth products.

The lending vertical, with a balance sheet size of about ₹1,200 crore, is also expanding. The company recently launched a loan-against-securities offering, targeting affluent investors. Bansal said this business could soon become larger than its personal loan portfolio.

The company, which operates a digital investment platform offering a broad suite of financial products to promote wealth creation, has opened its ₹6,632 crore IPO for subscription today, November 4, which will close on November 7. The issue is priced in the range of ₹95–₹100 per share.

For full interview, watch accompanying video

Also Read | Groww’s bets on multi-product expansion for next growth phase