Groww, India's largest retail stockbroker, is gearing up to file for an initial public offering (IPO) in the next 10-12 months, with a targeted valuation of $6-8 billion, according to sources familiar with the matter. This would be a landmark listing for the country's fintech sector, marking the first IPO by a digital-age trading platform in India.

The Bengaluru-headquartered company's targeted valuation is more than double the $3 billion level from its last funding round in October 2021. Groww, backed by prominent investors such as Peak XV, Tiger Global, and Alkeon, has begun talks with investment banks and will soon choose advisers for the IPO.

As part of its IPO preparations, Groww shifted its domicile to India from the U.S. last year. The company has established itself as a leader in India's crowded retail investing market, with 13.2 million active users in December, compared to 8.1 million for its closest rival Zerodha, according to National Stock Exchange data. Groww is adding between 325,000 to 550,000 new users monthly, more than twice the pace of its competitors.

India has emerged as a bright spot for tech listings globally, with seven technology startups going public in 2024 as part of 13 total startup listings. The country's growing domestic capital and policy continuity have been cited as key factors driving the IPO surge. India's market capitalization has doubled to $5.3 trillion since 2019, while daily trading volume has tripled to $15 billion.

JPMorgan's India head of equity capital markets, Abhinav Bharti, attributed the IPO surge in India to the country's growing domestic capital and policy continuity. "No other country globally provides you with this much political certainty and continuity of policy," Bharti told TechCrunch. "You can argue against a policy decision, but you cannot argue against the fact that they have been consistent."

Groww's IPO plans come as more than 20 Indian startups are preparing to go public in 2025, including business-to-business marketplace Zetwerk, managed workspace provider Table Space, Prosus-owned PayU, and pharmaceutical platform PharmEasy. The surge in tech listings is expected to continue, with India's fintech sector poised to play a significant role in the country's growing startup ecosystem.

The success of Groww's IPO will be closely watched, as it could pave the way for other fintech companies in India to follow suit. With its strong user base and growing influence in the country's retail investing market, Groww is well-positioned to make a significant impact on the Indian fintech landscape.

As the Indian fintech sector continues to evolve, Groww's IPO plans are a testament to the country's growing prominence in the global tech landscape. With its targeted valuation of $6-8 billion, Groww is set to make a significant splash in the Indian fintech sector, and its success could have far-reaching implications for the country's startup ecosystem.