Singapore’s sovereign wealth fund GIC has approached the Competition Commission of India (CCI) to seek approval for acquiring a 2.14% stake in Bengaluru-based fintech startup Groww. The investment is part of a larger funding round estimated at $250-300 million.
GIC is expected to lead the round with an infusion of around $150 million, while Groww has also engaged with existing investor Tiger Global to participate. ET had first reported on the financing in its March 26 edition.
GIC has sought the CCI nod through Viggo Investment, a special purpose vehicle wholly owned by Enterprise Holdings, which in turn is held by GIC Ventures, according to the notice filed with the commission.
The funding round may value Groww at around $7 billion post-money, more than double its last private market valuation of $3 billion in 2021. The pre-IPO round comes ahead of Groww’s planned filing of its draft prospectus with market regulator Sebi by the end of this month. The fintech firm aims to raise about $700 million through its listing.
“The proposed transaction will not cause any change in the competition landscape and will not raise any competition concerns in any relevant market,” the company said in its application.
Business and financials
Groww, India’s largest stock trading platform with about 13 million active traders, is also one of the biggest mutual fund distributors. The Peak XV Partners-backed startup has diversified into credit distribution, offering consumer durable loans.
It operates Groww Mutual Fund, a licensed asset management company. GIC, in its CCI application, acknowledged some overlap between its portfolio companies and Groww in mutual fund distribution.
For FY24, Groww reported an operating revenue of Rs 3,145 crore, but incurred a net loss of Rs 805 crore, primarily due to a one-time tax payout related to its reverse flipping from the United States to India.
GIC is expected to lead the round with an infusion of around $150 million, while Groww has also engaged with existing investor Tiger Global to participate. ET had first reported on the financing in its March 26 edition.
GIC has sought the CCI nod through Viggo Investment, a special purpose vehicle wholly owned by Enterprise Holdings, which in turn is held by GIC Ventures, according to the notice filed with the commission.
The funding round may value Groww at around $7 billion post-money, more than double its last private market valuation of $3 billion in 2021. The pre-IPO round comes ahead of Groww’s planned filing of its draft prospectus with market regulator Sebi by the end of this month. The fintech firm aims to raise about $700 million through its listing.
“The proposed transaction will not cause any change in the competition landscape and will not raise any competition concerns in any relevant market,” the company said in its application.
Business and financials
Groww, India’s largest stock trading platform with about 13 million active traders, is also one of the biggest mutual fund distributors. The Peak XV Partners-backed startup has diversified into credit distribution, offering consumer durable loans.
It operates Groww Mutual Fund, a licensed asset management company. GIC, in its CCI application, acknowledged some overlap between its portfolio companies and Groww in mutual fund distribution.
For FY24, Groww reported an operating revenue of Rs 3,145 crore, but incurred a net loss of Rs 805 crore, primarily due to a one-time tax payout related to its reverse flipping from the United States to India.
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