Groww, a stock broking startup, has received approval from the Competition Commission of India (CCI) to issue bonus shares to existing investors ahead of its Initial Public Offering.
According to a press release reviewed by Entrackr, the CCI has approved the acquisition of additional voting rights by certain Billionbrains Garage Ventures Private Limited shareholders, as well as the issuance of bonus convertible preference shares to Groww's existing equity shareholders.
The proposed transaction would eliminate Groww's founders' differential voting rights and issue bonus compulsorily convertible preference shares to all existing equity shareholders, including Peak XV, Ribbit Capital, YC Holdings, Tiger Global, and others.
Groww completed its domicile transition to India a year ago, following the reversal of its India and US entities, which began with a regulatory filing with the NCLT in 2023.
In addition, the Bengaluru-based business hopes to raise $200 million prior to its $6–8 billion IPO valuation. Prominent investors including YC Continuity, Ribbit Capital, Tiger Global, and Peak XV have contributed close to $400 million to Groww. In October 2021, the company raised $251 million in a Series E round, bringing its valuation to about $3 billion. Since then, it has not raised any more money.
Groww's revenue from operations increased to Rs 3,145 crore in FY24. In FY24, the Lalit Keshre-led company reported a net loss of Rs 805 crore, owing primarily to a one-time tax payment of Rs 1,340 crore for relocating to India.
