Groww, India’s largest stockbroker by active client base, has rolled out captive algorithmic trading under its new Groww Cloud platform, according to people familiar with the development.
The launch follows the Securities and Exchange Board of India (SEBI) directive issued in August, requiring all algorithmic trading to operate within brokers’ platforms. Earlier, most traders placed orders through third-party algo platforms connected via APIs, which were outside SEBI’s direct purview.
The Bengaluru-based wealth-tech firm’s move targets the active trading community and comes shortly before its initial public offering (IPO), which could value the company between $7 billion and $8 billion.
“Groww Cloud will allow algorithmic traders to deploy and run their strategies directly on the broker’s infrastructure, ensuring regulatory compliance and stability,” one of the sources said.
The new platform offers a web-based code editor, eliminating the need for traders to manage complex setups or external servers — a change that enhances compliance and reliability.
Focus on traders
Even as SEBI continues to tighten rules around derivatives to safeguard retail investors, the segment remains a crucial revenue driver for brokers.
In July, Groww launched a new trading terminal called 915, designed for high-volume traders, allowing them to customize dashboards based on their trading styles and data needs. A month later, it introduced an AI-powered investment assistant to help customers research, analyze, and invest based on their risk profiles.
Groww has also enhanced its trading performance, reportedly reducing order execution latency to a median of 40 milliseconds, offering near-institutional trading speeds to retail users.
IPO plans and business performance
Groww is expected to announce its IPO price band soon and aims to raise between ₹6,000–7,000 crore, including ₹1,060 crore in primary capital and the rest through an offer for sale (OFS) by existing investors such as Peak XV Partners, Ribbit Capital, Y Combinator, and Tiger Global.
Registered as Billionbrains Garage Ventures Ltd, the company plans to list in November 2025.
Groww reported a net profit of ₹1,819 crore in FY25, marking a strong turnaround from a loss in FY24. In Q1 FY26, it posted a profit of ₹378 crore on revenues of ₹904 crore. The firm also reported an 80% organic customer acquisition rate, 77% three-year user retention, and a net profit margin of 45%.
The founders, who together hold a 26.64% stake, will sell only 0.07% of the total shares in the IPO, with a 20% lock-in period for 18 months post-listing.
Expansion and acquisitions
Groww recently completed the acquisition of wealth management firm Fisdom after SEBI’s approval, expanding its presence in the wealth segment. The company has diversified its offerings to include Margin Trading Facility (MTF), commodities, and loans against shares, strengthening its revenue mix.
Navigating regulatory headwinds
Groww’s IPO comes amid a challenging phase for India’s broking industry, with higher taxes, reduced exchange rebates, and tightened norms for retail Futures & Options (F&O) trading. These changes have led to slower growth and declining profitability for many competitors.
Despite this, Groww continues to lead with a 26% market share among NSE active clients as of June 2025 and accounted for 45% of the net addition of active users in the 12 months ending June 2025. It also manages 18.5% of India’s active Systematic Investment Plans (SIPs) — roughly one out of every three new SIPs started nationwide.
Disclaimer
This article is for informational purposes only and should not be construed as financial or investment advice. Investors are advised to consult their financial advisors before making investment decisions.
