Groww’s IPO Sparks Debate as Early Investors Eye Massive Exit; Infra.Market, OYO, Pine Labs, and Others Line Up for Big Fundraises

India’s startup and fintech ecosystem is buzzing with IPO activity and high-stakes funding deals this week, led by Groww’s much-anticipated ₹7,000 Cr public listing. However, the fine print of Groww’s updated DRHP (Draft Red Herring Prospectus) reveals that the IPO may be more of a VC cashout event than a growth capital raise, sparking debate across the investment community. ---------------------------------------------------------------------------------------------------------------------------------- GROWW’S IPO CONUNDRUM The Bengaluru-based discount broking giant, India’s largest in its category, plans to raise ₹7,000 Cr, but only ₹1,060 Cr is allocated as fresh issue, with a massive 85% earmarked for an Offer for Sale (OFS). This means ₹6,000 Cr will directly flow to early investors rather than funding technology upgrades or expansion plans. * VC Windfall: Early backers are set for extraordinary returns. Peak XV Partners could gain ₹1,611 Cr (53.3X), Y Combinator stands to earn ₹1,047 Cr (29.5X), while Ribbit Capital and Tiger Global are in line for ₹668 Cr (44.2X) and ₹600 Cr (4.6X) respectively. * Business Headwinds: Groww is grappling with a 17% YoY drop in brokerage fees in Q1 FY26, driven by SEBI’s crackdown on F&O trading, which contributed 85% of FY25 revenue. Market volatility and a trader exodus add to the pressure. * Diversification Play: To reduce risk, Groww is expanding into credit, mutual funds, and wealth advisory, with mutual fund commissions now contributing 20% of FY25 revenue. Assets under management (AUM) have grown to ₹50,000 Cr, and the platform boasts 18.07 Mn monthly active users. While Groww’s IPO promises one of India’s biggest fintech listings, questions linger over whether its diversification moat can offset the optics of a VC-dominated exit. ---------------------------------------------------------------------------------------------------------------------------------- OTHER BIG MOVES IN INDIA’S STARTUP & TECH SCENE The week also saw significant funding deals, layoffs, and IPO activity across key sectors: * BigBasket’s Loss Widens: Quick commerce giant BigBasket posted a 42% jump in FY25 losses to ₹2,006.8 Cr, while revenue slipped 2% YoY to ₹9,866.7 Cr. * Gameskraft Layoffs: Following the Indian government’s ban on real-money gaming (RMG), Gameskraft laid off 120 employees, joining peers Games24x7, MPL, Zupee, and Pokerbaazi, which have all downsized recently. * Infra.Market [http://Infra.Market]’s $83 Mn Round: B2B ecommerce player Infra.Market [http://Infra.Market] is raising $83 Mn in Series G funding at a $2.8 Bn valuation, led by Silverline Homes, NK Squared, and Tiger Global. The company also plans to file a $700 Mn IPO DRHP next month. * OYO’s Third IPO Attempt: Hospitality unicorn OYO is once again eyeing an IPO, targeting a valuation of $7–8 Bn, but investor sentiment remains cautious about its high valuation. * BharatPe’s Secondary Sale: Gujarat-based family offices have acquired a 2.6% stake in BharatPe via wealth-tech platform Wylth, in a deal valued at ₹179 Cr, marking the fintech’s first secondary share sale in four years. * Pine Labs to Shrink IPO Size: Payments unicorn Pine Labs plans to trim its IPO size by 30% to $700 Mn, as some investors reconsider their OFS participation. The company aims to list by October 2025. * India’s LLM Push: The Indian government has selected eight new entities, including Tech Mahindra and Fractal, to build indigenous large language models (LLMs) under the IndiaAI Mission. IT Minister Ashwini Vaishnaw expects a working LLM by February 2026. * PayU Ups Stake in Mindgate: Fintech major PayU increased its stake in Mindgate from 43% to 70%, valuing the payments infrastructure provider at $300 Mn. ---------------------------------------------------------------------------------------------------------------------------------- STARTUP SPOTLIGHT – SNABBIT’S 10-MINUTE MAID SERVICE * Snabbit, a 2024-founded startup, is tackling India’s unorganised domestic help sector by “Uberising” household services. * Operating in Mumbai, Bengaluru, Gurugram, and Thane, Snabbit connects households with verified domestic workers for services like cleaning, laundry, and kitchen prep within 10 minutes. * With 2,500 workers and 1 lakh customers onboard, the platform uses rigorous KYC verification and training programs to build trust. * Its hourly pricing model (₹150–₹200) ensures better pay for workers and competitive rates for customers. ---------------------------------------------------------------------------------------------------------------------------------- KEY TAKEAWAYS * IPO Frenzy: Groww, Infra.Market [http://Infra.Market], OYO, and Pine Labs headline India’s next wave of mega-listings, but investor exits dominate the narrative. * Sector Shifts: SEBI’s crackdown on F&O trading and the RMG ban are forcing startups like Groww and Gameskraft to pivot business models. * Funding Momentum: Despite macro headwinds, big-ticket funding rounds continue, underscoring global investor interest in Indian startups. * AI Ambitions: India’s push for indigenous AI models signals a long-term commitment to building homegrown tech infrastructure. With IPOs heating up and regulatory challenges reshaping business strategies, India’s startup landscape is entering a high-stakes growth and consolidation phase, where execution will define the winners of the next decade.