The shares of Billionbrains Garage Ventures Ltd, the parent company of investment platform Groww, soared 17.2% on Thursday, taking its market capitalisation to around Rs 90,863 crore and putting it within reach of the Rs 1 lakh crore milestone. The stock hit a new high of Rs 153.50 on the Bombay Stock Exchange (BSE), extending its post-listing rally and underscoring investor enthusiasm for India’s fast-growing fintech sector.
Groww, which made a strong market debut earlier this week, had already listed at a 14 percent premium over its IPO price of Rs 100 and closed nearly 31 percent higher on its first trading day. The robust listing and subsequent surge have lifted the company’s valuation from about Rs 76,000 crore at IPO to nearly Rs 91,000 crore within days, highlighting the market’s confidence in the retail investing boom.
The Bengaluru-based company has emerged as one of India’s leading digital investment platforms, offering services across equities, mutual funds, and other financial products. In FY25, Groww reported a profit of around Rs 1,819 crore and revenue of Rs 4,056 crore, marking a strong 31 percent growth year-on-year. The platform has also been expanding into wealth management and lending segments to diversify its revenue base.
Analysts say the stock’s rapid rise reflects strong investor appetite for fintech plays but caution that the high valuation leaves little room for disappointment.
“The fundamentals of Groww as a stockbroking platform are very strong. Its profitability, both at the current level and in the foreseeable future, looks attractive given the scope for rapid market expansion, although there is still a bit of irrationality in the pricing,” said Dr. Vijaykumar, Chief Investment Strategist at Geojit Financial Services Ltd.
The market’s reaction also mirrors the growing participation of India’s retail investors, many of whom have entered the markets through platforms like Groww. The company’s success story is being viewed as a barometer of the digital financialisation wave sweeping across the country.
However, analysts warn of potential challenges ahead. Intense competition in the online broking and wealth-tech space, evolving SEBI regulations, and the need to improve monetisation per user could test the company’s growth trajectory. With the stock now trading significantly above its IPO price, any moderation in growth or profits could trigger profit-booking.
Despite the near-term risks, the company’s fundamentals remain strong, supported by rapid user growth and expanding financial product offerings. If Groww continues to execute on its expansion plans and maintain profitability, crossing the Rs 1 lakh crore market cap mark may only be a matter of time, say the analysts.