GIC to Acquire 2.14% Stake in Groww: CCI Approval Sought

New Delhi, May 15 (PTI) Singapore's sovereign wealth fund GIC has sought fair trade regulator CCI's approval to acquire a 2.14 per cent stake in Billionbrains Garage Ventures, the parent company of investment tech unicorn Groww.

GIC through its affiliate, Viggo Investment Pte (GIC Investor), will acquire stake in Groww.

"The proposed combination relates to the acquisition of 2.143 per cent shareholding in Groww by the GIC investor, pursuant to the execution of, inter alia, a deed of adherence and share subscription agreement on April 28, 2025," a notice filed with the Competition Commission of India (CCI) said on Tuesday.

Groww, which operates an online trading platform, offers stock trading, mutual fund investments and other financial instruments. The company also has its own asset management business.

The transaction falls under Section 5(a) of the Competition Act, 2002, which pertains to acquisitions and combinations requiring approval from the competition watchdog.

Viggo Investment is a special purpose vehicle and is wholly owned by Enterprise Holding, which in turn is a wholly owned subsidiary of GIC (Ventures) Pvt Ltd.

The proposed acquisition would not alter the competitive dynamics of any relevant market in India, GIC submitted to CCI, adding that a precise market definition was unnecessary as the deal does not raise any competition concerns.

According to reports, Groww was in discussions in March this year to raise nearly USD 250 million in a pre-IPO funding round, which was led by Singapore's GIC, while other existing investors also participated.

Following the funding, Groww's valuation stood at nearly USD 6.8 billion, more than double of the USD 3.1 billion it had recorded in its last funding round in 2021.

Bengaluru-based Groww was founded in 2016 by former Flipkart executives Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal.

For FY24, Groww reported a net loss of Rs 805 crore primarily due to a one-time tax payment of Rs 1,340 crore for shifting its domicile to India from the US.

However, the Tiger Global-backed company maintained its operational profitability at Rs 535 crore for FY24 as compared to Rs 458 crore for FY23, marking an increase of 17 per cent.

Its revenues surged to Rs 3,145 crore for the financial year that ended on March 31, 2024, higher by 119 per cent than Rs 1,435 crore in the preceding fiscal year.