Tiger Global-backed stockbroking platform Upstox is preparing to explore an initial public offering (IPO) in India, according to a report by The Economic Times. The brokerage is currently in discussions with investment banks and is expected to appoint advisers as it moves closer to a potential public-market debut. The proposed IPO could raise around $400 million through a combination of fresh shares and an offer for sale by existing investors.
The potential listing would mark a significant step for one of India’s largest digital brokerage platforms and comes after a wave of successful technology and fintech listings. Upstox has already built a profitable business, with FY25 profit after tax rising to about ₹215 crore, while its management had earlier targeted around ₹500 crore in FY26 profit. The company has also been expanding beyond traditional equity broking into mutual funds, commodities, margin trading and other financial products.
Upstox Begins Preparations For Potential India IPO
Upstox is reportedly talking to investment banks as it evaluates a public listing in India. The brokerage plans to appoint advisers shortly, according to people familiar with the matter cited by The Economic Times.
The potential IPO could generate approximately $400 million, or roughly ₹3,400 crore at an indicative exchange rate of ₹85 per dollar. The final issue size, valuation, primary capital and offer-for-sale component have not yet been disclosed and could change as the company progresses with the process.
Potential IPO At A Glance
| IPO Parameter | Current Information |
|---|---|
| Company | Upstox |
| Parent company | RKSV Securities India Pvt Ltd |
| Proposed market | India |
| Potential IPO size | ~$400 million |
| Approximate rupee equivalent* | ~₹3,400 crore |
| IPO structure | Fresh issue + offer for sale |
| Investment banks | Discussions underway |
| IPO advisers | Expected to be appointed |
| Current status | Planning stage |
| Confirmed listing date | Not announced |
*Indicative conversion using ₹85 per US dollar. The eventual issue size and exchange rate could differ.
The report does not indicate that Upstox has filed draft IPO papers with the Securities and Exchange Board of India (SEBI). Therefore, the potential offering remains at a preparatory stage rather than being a formally launched IPO process.
Upstox Has Become A Profitable Brokerage
The potential IPO comes after Upstox significantly improved its profitability.
The company reported about ₹1,208 crore of total income in FY25 and profit after tax of approximately ₹215 crore. Revenue from operations stood at ₹945 crore, broadly flat from ₹951 crore in FY24, while profitability improved substantially.
Upstox Financial Performance
| Financial Metric | FY24 | FY25 | Change |
|---|---|---|---|
| Revenue from operations | ₹951 crore | ₹945 crore | ~-0.6% |
| Total income | ~₹1,112 crore | ~₹1,208 crore | ~8.6% |
| Profit after tax | ~₹190 crore | ~₹215 crore | ~13% |
| Brokerage income | — | ₹767 crore | — |
| Non-operating income | — | ₹263 crore | — |
The numbers show an important characteristic of Upstox’s business: profitability has improved even though operating revenue was broadly flat in FY25.
Brokerage income remained the company’s largest operating revenue stream at ₹767 crore, accounting for more than 81% of revenue from operations. Depository operations contributed ₹65 crore, while management services and other operating income contributed another ₹113 crore.
FY25 Revenue Mix
Brokerage income — ₹767 crore
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Depository operations — ₹65 crore
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Management & other operating income — ₹113 crore
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The numbers indicate that Upstox remains heavily linked to its core broking business, although the company has been working to broaden its revenue base.
Upstox Targeted ₹500 Crore Profit For FY26
Earlier in 2026, Upstox CEO and co-founder Ravi Kumar said the company was targeting a significant increase in profitability for FY26.
The company had projected profit after tax of around ₹500 crore, compared with ₹215 crore in FY25. That would represent a growth of more than 2.3 times in one year. Management also expected EBITDA to more than double.
Profit Growth Target
| Period | Profit After Tax |
|---|---|
| FY25 | ₹215 crore |
| FY26 target | ~₹500 crore |
| Increase | ~₹285 crore |
| Target growth | ~2.3X |
The profit target is important for a potential IPO because public-market investors generally place greater emphasis on sustainable earnings and operating leverage than on user growth alone.
Upstox has said that its focus has shifted toward higher-quality and more active customers. According to Ravi Kumar, revenue per active user increased by more than 40% year-on-year, while retention among high-value traders remained above 90%.
Why Upstox Is Considering An IPO Now
The timing of the reported IPO preparations is notable because India’s public markets have become increasingly receptive to technology and fintech companies.
Peer brokerage platform Groww successfully entered the public markets, demonstrating that retail-investing platforms can attract substantial investor interest. Upstox had previously maintained that it was not in a hurry to list.
In February 2026, Kumar said there was no fixed IPO timeline and that the company was comfortable remaining private because it was not facing capital pressure. He said the priority was to strengthen profitability, expand products and build long-term value.
The latest report therefore represents a shift in the company’s apparent IPO posture. It does not necessarily mean an immediate listing, but discussions with investment banks suggest that public-market preparations are becoming more concrete.
Tiger Global Has Been A Key Upstox Investor
Tiger Global has backed Upstox since 2019, when the US investment firm invested $25 million in the brokerage.
At the time, Upstox said it had been profitable for two years and planned to use the funding to expand its business, strengthen its technology platform and build its team.
Tiger Global later participated in another funding round that valued Upstox at around $3 billion in 2021. At the time, Tiger Global was reported to hold a 31% stake in the company.
Upstox’s Major Milestones
| Year | Key Development |
|---|---|
| 2009 | Upstox founded |
| 2016 | Raised an early institutional funding round |
| 2019 | Tiger Global invested $25 million |
| 2021 | Upstox reached unicorn status |
| 2024 | FY24 revenue reached ₹1,311 crore |
| 2025 | FY25 profit reached about ₹215 crore |
| 2026 | Management targeted ~₹500 crore FY26 profit |
| 2026 | Reported IPO preparations begin |
Upstox also counts prominent investors such as Ratan Tata among its backers, adding to the company’s established investor base.
Upstox Is Diversifying Beyond Equity Broking
Regulatory changes and lower trading activity have encouraged India’s digital brokers to diversify their businesses.
Upstox has expanded into commodities, margin trading facilities, mutual funds, insurance, fixed deposits and other financial products. The strategy is designed to reduce dependence on any single trading segment and increase revenue per customer.
The company said its mutual-fund business had become an important growth area, while insurance and other products are being developed as complementary businesses rather than immediate replacements for trading revenue.
Upstox’s Expanding Product Ecosystem
| Category | Offering |
|---|---|
| Equities | Stock investing and trading |
| Derivatives | Futures and options |
| Commodities | Commodity trading |
| Mutual funds | SIPs and mutual-fund investing |
| Wealth products | Fixed deposits and bonds |
| Insurance | Insurance distribution |
| Margin | Margin Trading Facility |
| IPOs | IPO applications |
This diversification could become an important part of the IPO narrative because investors will likely assess whether Upstox can build a broader financial-services platform rather than remain primarily dependent on trading volumes.
The Brokerage Market Is Becoming More Competitive
Upstox operates in a highly competitive market alongside Zerodha, Groww and other digital brokerage platforms.
The sector experienced explosive growth during the pandemic as millions of Indians opened demat accounts and began investing or trading online. The market has since matured, while regulatory changes have affected derivatives activity.
Upstox’s management argues that India’s retail-investing opportunity remains underpenetrated. Equity participation in India is still significantly lower than in developed markets such as the US, leaving room for further expansion if more households enter financial markets.
At the same time, the business environment has become more demanding. Customer acquisition costs, regulatory changes, lower trading activity and intense competition could all influence the company’s growth and valuation when it eventually approaches public investors.
What A $400 Million IPO Could Mean
If Upstox proceeds with a roughly $400 million IPO, the transaction would potentially provide liquidity to existing shareholders while also giving the brokerage access to public capital.
A combination of fresh shares and an offer for sale would serve different purposes. The fresh issue would bring capital into the company for growth or other corporate purposes, while an offer for sale would allow existing investors to monetise part of their holdings.
Potential IPO Structure
Upstox IPO — ~$400 Million
Fresh Issue
→ Capital raised by Upstox
→ Potentially supports expansion
Offer For Sale
→ Existing shareholders sell shares
→ Provides investor liquidity
Public Listing
→ Greater transparency
→ Public price discovery
→ Access to future capital markets
The actual split between these components has not yet been disclosed.
What Investors Will Watch Before The IPO
Upstox’s profitability will likely be one of the most closely watched factors if the company proceeds with the listing.
Investors will also examine customer numbers, active-client trends, revenue diversification, brokerage dependence, regulatory exposure and the sustainability of its profit growth.
| Key IPO Metric | Why It Matters |
|---|---|
| Profit growth | Indicates earnings scalability |
| Active customers | Measures engagement |
| Revenue per user | Shows monetisation |
| Brokerage dependence | Indicates concentration risk |
| Non-broking revenue | Shows diversification |
| Customer acquisition cost | Measures growth efficiency |
| Regulatory exposure | Affects trading economics |
| Valuation | Determines investor expectations |
The company’s ability to deliver its ₹500 crore FY26 profit target could therefore become an important benchmark for any future valuation discussions.
The Bigger Picture
Upstox’s reported move toward an IPO comes at an important point for India’s fintech industry. Digital brokerages are moving from a growth-at-all-costs phase toward businesses where profitability, customer quality and diversified revenue streams matter increasingly. Upstox’s FY25 profit of about ₹215 crore and its stated FY26 target of ₹500 crore provide a stronger financial foundation for a potential listing than the company had during its earlier high-growth phase.
The reported $400 million potential issue would also place Upstox among the more significant fintech offerings to watch. However, the IPO is not yet a confirmed transaction with a disclosed valuation, issue price or listing date. The eventual public-market case will depend heavily on how Upstox balances growth, profitability, regulation and competition in India’s increasingly crowded digital-investing market.
Looking Ahead
The immediate focus will be on Upstox’s engagement with investment banks and the appointment of IPO advisers. If the process moves forward, investors will eventually get greater visibility into the company’s valuation, issue structure, financial performance and shareholder plans. The company will also need to demonstrate that the improvement in profitability can continue beyond a single fiscal year.
For India’s brokerage sector, a successful Upstox listing could provide another important public-market benchmark after the emergence of listed fintech and investment platforms. It could also give existing private investors a route to liquidity while giving Upstox a platform for future expansion. For now, however, the proposed IPO remains in the planning phase, and the final size, timing and structure remain subject to change.
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