Upstox, a broking firm backed by Tiger Global, is reportedly in discussions with investment banks regarding a potential Initial Public Offering (IPO) in India. The company aims to raise around $400 million through this offering, which is expected to comprise a mix of new shares and a sale by existing investors. Advisers are expected to be appointed shortly, though discussions are still in early stages and details could change.
This move follows Groww's significant IPO last year, which raised $693 million and valued the company at $12.8 billion. Upstox achieved unicorn status in 2021 after a funding round valued it at $3.5 billion. The company has raised approximately $220 million across six funding rounds from investors including the late Ratan Tata, Tiger Global, and Stride Ventures.
As of July 31, Upstox ranked fifth among local brokerages in terms of active clients, with about 1.9 million users. Groww leads the market, followed by Zerodha, Angel One Ltd., and ICICI Securities Ltd. Upstox serves a customer base where 85% are from Tier-II and Tier-III cities, and nearly 70% are first-time investors. The company recently crossed 2 crore (20 million) KYC-registered customers and aims to expand to 10 crore over the next five years.
