Groww allocates ₹225 crore for brand building ahead of IPO

Bengaluru-based stock trading platform Groww has filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), proposing a fresh issue of equity shares worth Rs 1,060 crore and an offer for sale (OFS) of 57.42 crore shares by existing shareholders.

According to the IPO documents filed by its parent, Billionbrains Garage Ventures Limited, the company has earmarked Rs 225 crore from the net proceeds for brand building and performance marketing. Another Rs 205 crore will go to its material subsidiary, Groww Creditserv Technology Pvt Ltd, Rs 167.5 crore to Groww Invest Tech Pvt Ltd, and Rs 152.5 crore for strengthening cloud infrastructure.

Of the Rs 225 crore reserved for brand building, Rs 135 crore is planned for digital advertising and performance marketing, while Rs 90 crore will be directed to traditional media such as television, print, radio, and on-ground campaigns. Additional spends of Rs 45 crore (FY26) and Rs 90 crore (FY27) have been outlined for performance marketing, with Rs 30 crore (FY26) and Rs 60 crore (FY27) for traditional channels.

The platform’s marketing and promotional expenses have increased sharply over recent years. The company spent Rs 243.8 crore in FY23 on brand building, which rose to Rs 487.5 crore in FY25, accounting for 30.54% of its total expenditure of Rs 1,596.4 crore. In Q1 FY26 alone, marketing spends stood at Rs 108.4 crore.

The platform’s branding expenses as a share of total income have declined, from 19.34% in FY23 to 12% in FY25, as the firm’s customer base grew organically. Marketing and business promotion expenses as a percentage of revenue from operations also fell from 21.36% in FY23 to 17.20% in FY24 and 12.50% in FY25, before easing further to 11.99% in Q1 FY26.

It has committed up to Rs 351 crore in aggregate to GroupM Media India Pvt Ltd for branding and performance marketing purposes.

On the financial front, the company reported revenue from operations of Rs 3,901.7 crore in FY25, a 49.5% increase from Rs 2,609 crore in FY24. The firm turned profitable in FY25 with a profit of Rs 1,824.3 crore, compared to a loss of Rs 805 crore in FY24. For Q1 FY26, profit stood at Rs 378 crore, up 11.8% year-on-year.

As of June 30, 2025, Groww’s NSE active client base was 12.58 million, while the overall active user base reached 14.38 million.