CCI clears Groww’s bonus shares, founders’ special rights to end before IPO

Stock broking startup Groww has secured approval from the Competition Commission of India (CCI) to issue bonus shares to its existing investors ahead of its Initial Public Offering (IPO).

According to a press release reviewed by Entrackr, the CCI has approved the acquisition of additional voting rights by certain shareholders of Billionbrains Garage Ventures Private Limited, along with the issuance of bonus convertible preference shares to all existing equity shareholders of Groww.

The proposed transaction includes, the elimination of differential voting rights held by Groww’s founders and the issuance of bonus compulsorily convertible preference shares to all existing equity shareholders, including Peak XV, Ribbit Capital, YC Holdings, Tiger Global, and others.

This comes a year after Groww completed its domicile transition to India, following the reversal of its India and US entities, which began with a regulatory filing with the NCLT in 2023.

The Bengaluru-based company is also in discussions to raise $200 million ahead of its IPO at a valuation of $6-8 billion. Groww has raised close to $400 million so far from prominent investors, including Peak XV, Tiger Global, Ribbit Capital, and YC Continuity. The company was last valued at approximately $3 billion after securing $251 million in its Series E round in October 2021 and has not raised any new funding since.

Groww’s revenue from operations surged to Rs 3,145 crore in FY24. The Lalit Keshre-led company recorded a net loss of Rs 805 crore in FY24, primarily due to a one-time tax payment of Rs 1,340 crore for relocating its domicile to India.