Top News

Groww has completed the acquisition of wealthtech platform Fisdom after receiving SEBI approval

The acquisition will serve as a launchpad for Groww’s new high net worth (HNI) focussed offering ‘W’ and to expand offerings in the wealth management space

During the initial talks of acquisition in March, reports surfaced that the deal will value Fisdom at about $150 Mn

IPO-bound investment tech startup Growww has completed the acquisition of wealthtech platform Fisdom after receiving the Securities Exchange Board of India’s (SEBI) approval, sources told Inc42.

The acquisition will serve as a launchpad for Groww’s high-net-worth individuals (HNI) focussed offering ‘W’.

Groww signed a definitive agreement in May to acquire Fisdom in an all-cash deal at a valuation of about $150 Mn.

Groww declined to comment on Inc42’s queries on the development.

With the deal, Groww is looking to leverage Fisdom’s wealthtech expertise and expansive network of banks. “With Fisdom’s expertise and established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank, Groww will be able to enhance its offerings and expand its customer base,” sources told Inc42 in May.

Founded in 2015 by Anand Dalmia and Subramanya SV, Fisdom offers wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), among others. It claims to have 1 Mn active customers across its offerings.

This is the second major acquisition by Groww after Indiabulls AMC. The fintech unicorn entered the asset management space in September 2023 following the acquisition of Indiabulls AMC.

Founded in 2016 by ex-Flipkart executives Lalit Kesehre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww positions itself as a full-stack financial platform spanning mutual funds, stockbroking, asset management, margin trading, and now wealth solutions for affluent and mass-affluent segments.

The platform claims it has over 2.7 Lakh active affluent users with portfolios exceeding INR 25 Lakh, a user segment that has grown nine-fold between FY23 and Q1 FY26, as per its updated draft red herring prospectus (DRHP).

Groww, which is eyeing a public listing soon, filed its updated DRHP last month. Its public issue will comprise a fresh issue of shares worth up to INR 1,060 Cr ($120.5 Mn) and an offer-for-sale (OFS) component of up to 57.4 Cr shares.

Investors like Peak XV Partners, Tiger Global, Ribbit, among others, will offload their stakes via the IPO. Sources told Inc42 that the OFS component would be in the range of INR 5,000 Cr to INR 6,000 Cr ($568 Mn to $681 Mn).

Groww plans to deploy INR 225 Cr from the fresh issue proceeds to fuel its brand building and performance marketing activities. It will also invest INR 205 Cr in its NBFC arm, Groww Creditserv Technology Pvt Ltd, and INR 167.5 Cr in its mutual fund subsidiary, Groww Invest Tech Pvt Ltd. Additionally, INR 152.5 Cr has been earmarked for strengthening its cloud infrastructure.

In August, Inc42 reported that the company is eyeing a valuation of $7 Bn to $8 Bn for the public issue. This is in line with its last private valuation when Groww raised $200 Mn in its Series F round at a valuation of $7 Bn in June.

Notably, Groww’s cofounders cumulatively own 27.97% stake in the company and will be offloading 10 Lakh shares each in the IPO.

On the financial front, Groww’s consolidated net profit for Q1 FY26 surged 12% to INR 378.4 Cr from INR 338 Cr profit in the year-ago period. Operating revenue stood at INR 904.4 Cr, down 10% from INR 1,000.8 Cr in Q1 FY25.