Upstox in talks with banks for potential $350-400 million IPO

Investment firm Upstox is engaged in preliminary talks with financial institutions to potentially launch an initial public offering (IPO) valued at approximately $350-400 million (around ₹3,351-3,829 crore), according to sources. The IPO is expected to involve the sale of new shares and an offer-for-sale by existing shareholders, as per the sources.

Since its inception, Upstox has amassed around $220 million from six funding rounds led by notable investors such as Ratan Tata, Tiger Global, Kalaari Capital, and Stride Ventures. The company achieved unicorn status in 2021 following a funding round that valued it at $3.5 billion.

Currently, Upstox boasts 2 million KYC-registered customers and strives to expand its user base to 10 million customers over the next five years. Notably, 85% of its customer base resides in Tier-II and Tier-III cities, with approximately 70% comprising first-time investors. Ravi Kumar, the CEO and co-founder of Upstox, expressed in a statement, "From welcoming our first customer in a small office in BKC to reaching 2 crore customers today, we have come a long way."

The company continues to prioritize leveraging technology to assist customers in making informed financial decisions and broadening access to financial markets. As of July 31, Upstox held the fifth position among domestic brokerages in terms of active clients, with approximately 1.9 million users, according to data from the National Stock Exchange (NSE).

Competitors such as Groww, Zerodha, Angel One Ltd, and ICICI Securities topped the list. Additionally, Upstox has obtained regulatory approval to facilitate international and US stock investing through GIFT City. Operating as a broker-dealer, Upstox will route trades through foreign clearing firms. Comments are required to be in English, full sentences, and adhere to community guidelines. Users must register and log in to participate in the new commenting platform.