Two people with knowledge of development projects, online stock trading platform Groww signed a determination to acquire wealth technology startup Fisdom for approximately $150 million.
Currently, the deal will be approved by regulators and will mark Groww’s entry into wealth management.
Fisdom’s top leader will continue to expand its wealth management department internally and say on anonymity.
Growth and Fisdom refuse to comment Mintquery.
The deal was on the second day Mint Groww will report a confidential red herring prospectus in the next two weeks.
Transactions follow GIC actions, IPO plans
Founded in 2015 by Anand Dalmia and Subramanya SV, Fisdom provides wealth management including mutual funds, equity, bond and portfolio management (PMS) and tax filing services. Fisdom has more than 15 offices in India, supported by investors such as Prosus, Saama and Quona Capital.
Fisdom’s revenue grew 28% ₹84 million in fiscal year 24, and the loss range is ₹574 million.
The deal marks Groww’s second largest acquisition behind Indiabulls Asset Management in May 2023. It follows Viggo Investment Pte. Limited is an investment entity of the Singapore sovereign wealth fund GIC, which has contacted the Competition Commission of India (CCI) to approve the acquisition of a 2.143% stake in GrowW. The company expects to be worth $7 billion after funding. Mint Report.
The stock trading platform has selected banks including JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd for its initial public offering (IPO). In March, Groww issued a mandatory convertible preferred shares as a reward for existing investors, including XV and Ribbit.
The company’s parent, Groww Inc., was founded in 2016 and began transferring its base from Delaware to Bengaluru two years ago. This effectively makes Groww’s major Indian company Tillionbrains Garage Ventures its parents.
