The Competition Commission of India (CCI) has received a notification regarding a proposed restructuring of Billionbrains Garage Ventures Private Limited, the company operating the popular investment platform Groww.
The transaction, involving key investors Peak XV Partners, Ribbit Capital, and Y Combinator (YC) along with Groww’s founders, aims to modify its shareholding structure while maintaining existing control.
The restructuring plan includes the collapse of differential voting rights (DVRs) currently held by Groww’s founders, which provide them with enhanced voting power. The proposal seeks to eliminate these DVRs, aligning voting rights proportionally with shareholding.
Additionally, Groww plans to issue bonus compulsorily convertible preference shares (CCPS) to all existing equity shareholders, ensuring that ownership remains unchanged.
The transaction has been notified under Section 5(a)(i)(A) of the Competition Act, 2002, as a regulatory compliance measure. The parties assert that this restructuring will not alter the competitive landscape, as the major investors and founders already exercise joint control over Groww.
Peak XV Partners is a venture capital and growth investment firm with a strong presence in India and Southeast Asia. Ribbit Capital is a global investment firm specializing in early-stage fintech companies. YC is a renowned startup accelerator and early-stage venture investor.
Groww is a leading online trading platform offering investment options in stocks, mutual funds, and financial instruments. It also operates as a mutual fund house.
The parties have left the market definition open, suggesting that the proposed changes will not adversely impact competition. However, they have outlined Groww’s presence in brokerage services, mutual funds, lending, digital payments, payment aggregation, and orchestration services.
This filing underscores the growing consolidation in India’s fintech and investment space, as platforms like Groww continue to refine their corporate structures while expanding their influence in retail investing.
The CCI’s decision on this transaction will be closely watched, as it could set a precedent for similar governance and shareholding restructurings in India’s thriving startup ecosystem, economy watchers said.
