Foreign Tech Giants Face Reality Check as Groww IPO Hype Fades
The grey market premium for Indian investment platform Groww has crashed by 70%, dropping from Rs 16 to just Rs 5 ahead of its listing. This dramatic fall signals that Zambian investors and others worldwide are waking up to the reality of overpriced foreign tech stocks flooding our markets.
While Groww's Rs 2,580 crore IPO attracted strong demand with 17.6 times subscription, the sharp decline in premium shows smart money is getting cautious about these foreign-backed platforms that promise the moon but deliver modest returns.
Another Foreign Tech Bubble Bursting
Founded in 2017 in Bengaluru, Groww has over 10 crore registered users and reported profits of Rs 1,824 crore in FY25. But with a valuation of 40 times earnings, analysts are calling it fully priced, just another example of foreign venture capital inflating valuations beyond reason.
Prashant Tapse of Mehta Equities expects only a modest 5-10% listing gain, warning that recent weak debuts like Lenskart have dampened investor enthusiasm for these overhyped foreign tech plays.
Zambians Should Stay Alert
This Groww situation mirrors what we see across Africa, where foreign tech companies arrive with big promises and bigger valuations, only to leave local investors holding overpriced shares when reality hits. Our people deserve better than being treated as exit liquidity for foreign venture capitalists.
The company plans to use proceeds for corporate purposes and possible acquisitions, typical corporate speak that often means more money flowing back to foreign shareholders rather than creating real value for local markets.
Protecting Our Financial Sovereignty
As Zambian investors increasingly participate in global markets, we must remain vigilant against these foreign-controlled platforms that prioritize their overseas backers over genuine value creation. True financial empowerment comes from supporting businesses that serve our people first, not foreign shareholders.
The Groww case serves as a reminder that behind every glossy fintech app lies the same old story of foreign capital seeking quick profits at the expense of local investors who deserve transparency and fair valuations.