Investment Platform Upstox In Early Talks For $350-400 Million IPO

Investment platform Upstox has initiated preliminary discussions with investment banks for a potential initial public offering (IPO) to raise approximately $350-400 million, equivalent to around ₹3,351-3,829 crore, according to sources familiar with the matter.

The proposed public offering is likely to comprise a combination of fresh shares and an offer-for-sale (OFS) by existing investors. Upstox achieved unicorn status in 2021 following a funding round that valued the company at $3.5 billion. To date, the firm has raised around $220 million across six funding rounds from backers including the late Ratan Tata, Tiger Global, Kalaari Capital, and Stride Ventures.

In operational updates, the company announced that it has crossed the milestone of 2 crore KYC-registered customers. Upstox stated that 85 per cent of its customer base originates from Tier-II and Tier-III cities, while nearly 70 per cent are first-time investors. The platform has set a target to expand its user base to 10 crore over the next five years.

“From welcoming our first customer in a small office in BKC to reaching 2 crore customers today, we have come a long way,” Ravi Kumar, CEO and co-founder of Upstox, said in a statement on Thursday. He added that the company remains focused on using technology to help customers make better financial decisions and widen access to financial markets.

As of July 31, data from the National Stock Exchange (NSE) indicates that Upstox ranked fifth among domestic brokerages in terms of active clients, with approximately 1.9 million users. Groww held the top position on the list, followed by Zerodha, Angel One Ltd, and ICICI Securities.

Additionally, Upstox has secured regulatory approval to facilitate international and US stock investing through GIFT City. Under this approval, the company will operate as a broker-dealer and route trades through foreign clearing firms.

"The move by Upstox to explore an IPO reflects the maturing landscape of India's fintech and digital brokerage sector. Reaching a user base where a significant majority comes from Tier-II and Tier-III cities demonstrates strong regional penetration. However, transitioning from private backing to public markets will require sustained focus on regulatory compliance, operational efficiency, and scalable growth in a competitive environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes