IPO-Bound Groww To Acquire Wealth Management Platform Fisdom For $150 Million
This will be Groww's second largest acquisition after Indiabulls AMC in May 2023.
Fintech major Groww has signed a definitive agreement to acquire wealth management company Fisdom for approximately $150 million, or around Rs 1,280 crore, in an all cash deal, according to people in the know.
The deal is subject to regulatory approval. Its completion is likely to bolster Groww's capabilities and expand its offerings in the wealth management sector. This will be the company's second largest acquisition after its acquisition of Indiabulls AMC in May 2023.
Groww declined to comment on the development.
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom is a player in the digital wealth management space. The company offers wealth management solutions including mutual funds, stocks, bonds, portfolio management services, and tax filing solutions.
Fisdom serves over one million customers through more than 15 offices across India and has investors such as Prosus, Saama, and Quona Capital. With Fisdom’s expertise and established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank, Groww aims to enhance its offerings and expand its customer base.
The company posted a revenue of Rs 84 crore in fiscal 2024, a 28% increase from the previous year and a 19% reduction in net losses to Rs 57.4 crore.
Groww is currently looking to list on Indian bourses, and has recently raised $150 million from GIC, as a part of a large pre-IPO round. The fintech major began in 2016 as a mutual fund investing platform and expanded its offerings by introducing stocks, IPOs, and ETFs in 2020.
Groww turned profitable in fiscal 2023, with revenue of Rs 1,277 crore and a profit of Rs 449 crore. In fiscal 2024, the company reported a topline of Rs 3,145 crore with an operating profit of Rs 535 crore.
