Groww to buy wealth management firm Fisdom for $150m
Groww, a brokerage platform in India, is acquiring wealth management firm Fisdom for $150m in an all-cash transaction.
This acquisition is pending regulatory approval from the Securities and Exchange Board of India (SEBI) and is expected to be finalised within two to three months.
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The announcement comes as Groww prepares to file its draft red herring prospectus via a confidential route in the near future, reported Entrepreneur India.
Looking ahead, Groww is expected to pursue its initial public offering (IPO) at a valuation estimated between $7bn and $8bn.
Founded in 2015, Fisdom offers a range of financial services, including mutual fund investments, stock trading, bonds, portfolio management, and tax filing.
The company has a customer base of more than one million and operates 15 offices across India.
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By GlobalDataFisdom has received investment from firms such as Prosus, Saama Capital, and Quona Capital.
The acquisition of Fisdom is expected to enhance Groww’s service offerings and diversify its revenue streams in light of ongoing regulatory changes and market fluctuations, reported the media outlet.
This acquisition represents Groww’s second major purchase this year, following its acquisition of Indiabulls Asset Management Company in May 2023.
Groww, which began its operations as a mutual fund investment platform in 2016, expanded its offerings to include IPO investments, equity trading, exchange-traded funds (ETFs) in 2020.
For the financial year 2024, Groww reported a consolidated revenue of Rs31.45bn ($367m), more than double the revenue from the previous year.
The operating profit for the same period was Rs5.35bn ($62.5m), an increase from Rs4.58bn ($53.5m) in the financial year 2023.
In 2021, Groww secured $251m in a funding round, tripling its valuation to $3bn at that time.
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