The Competition Commission of India (CCI) has been notified about a proposed restructuring of Billionbrains Garage Ventures Private Limited, the company behind the popular investment platform Groww.
The restructuring deal involves key investors Peak XV Partners, Ribbit Capital, and Y Combinator (YC) as well as Groww’s founders. The main objective of the transaction is to adjust the shareholding structure while keeping the existing control intact.
As part of the restructuring plan, the founders of Groww will no longer hold differential voting rights (DVRs) that give them extra voting power. The proposal aims to remove these DVRs and align voting rights with the proportion of shareholding.
Moreover, Groww intends to issue bonus compulsorily convertible preference shares (CCPS) to all current equity shareholders to ensure there is no change in ownership.
The notification of this transaction falls under Section 5(a)(i)(A) of the Competition Act, 2002, as a compliance requirement. The parties involved assert that the proposed restructuring will not impact competition as the major investors and founders already jointly control Groww.
Peak XV Partners, Ribbit Capital, and YC are prominent investors in the venture capital and fintech space. Groww, on the other hand, is a leading online trading platform that offers investment options in stocks, mutual funds, and other financial instruments.
The parties have refrained from defining the market in which Groww operates but have highlighted its presence in brokerage services, mutual funds, lending, digital payments, and payment aggregation services.
This filing underscores the ongoing consolidation in India’s fintech and investment sector, with platforms like Groww optimizing their corporate structures while expanding their reach in retail investing.
The decision of the CCI on this transaction is crucial as it could set a precedent for similar governance and shareholding restructurings in India’s startup ecosystem.
Published on March 4, 2025.