Groww: The company will buy this wealth management startup before IPO - know the details

News Topical, Digital Desk : Leading brokerage firm Groww has agreed to acquire wealth management startup Fisdom in a cash deal worth $150 million. According to Moneycontrol, sources say that this acquisition has happened a few days before Groww files an IPO with market regulator SEBI through the confidential route. According to the report, the deal is subject to SEBI approval and is likely to take 2-3 months. Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom offers mutual funds, stocks, bonds, portfolio management services (PMS) and tax filing solutions. The company has more than one million customers through 15 offices across the country. The company is backed by investors like Prosus, Saama and Quona Capital.

Groww has also raised $150 million in funding from Singapore-based investment firm GIC at a post-money valuation of $7 billion, which is part of a larger pre-IPO round of $250-300 million, which is expected to close in the next two weeks. The 100 per cent acquisition will expand Groww's product offering. This will be Groww's second major acquisition after the acquisition of Indiabulls AMC in May 2023. Groww has a large customer base Unlike other large brokerage houses, Groww has a strong distribution of mutual fund and systematic investment plan (SIP) portfolios and a large customer base, allowing it to effectively diversify its revenue to protect itself from any decline in stock trading. Groww started as a mutual fund investment platform in 2016 and has steadily expanded its offerings by introducing stocks, IPOs and ETFs in 2020. Grow, the country's largest stock broking firm by active investor base, has more than doubled its FY24 revenue to Rs 3,145 crore at the consolidated level. The company's FY25 figures are not yet public and are likely to be part of the DRHP data.

Read More: FII/FPI & DII Data: On Friday 16th May, FII broke a big record - know what DIIs did