Indian mutual fund industry has made significant conviction bets on key new-age tech companies in early 2026. While Urban Company has seen a massive institutional surge following its 2025 listing, Groww remains a focal point as fund houses accumulate stakes via secondary market transactions ahead of its anticipated IPO.
Urban Company: SBI Mutual Fund Leads ₹862 Crore Buying Spree
Following the expiry of a six-month shareholder lock-in period on March 17, 2026, Urban Company witnessed a dramatic shift in its shareholding pattern. While some early global investors exited, domestic mutual funds stepped in as the primary “white knights.”
- The SBI MF Blockbuster: SBI Mutual Fund emerged as the largest buyer, acquiring an additional 4% stake for approximately ₹632 crore. The fund purchased shares at an average price of ₹109.85.
- Total Institutional Inflow: In March 2026 alone, mutual funds collectively poured ₹862 crore into Urban Company, making it the single largest small-cap acquisition by value during the market correction.
- The “InstaHelp” Bet: Fund managers are reportedly backing Urban Company’s aggressive expansion into InstaHelp (its 15-minute house-help vertical), which saw a 33% YoY revenue surge in Q3 FY26.
- Valuation Stability: Despite a net loss of ₹21.3 crore in the December quarter, the stock rallied 15% in mid-March as institutional “conviction buying” offset the pressure from the lock-in expiry.
Groww: Pre-IPO Secondary Market Accumulation
Groww, which filed revised IPO papers for a ₹6,000–₹7,000 crore public issue earlier this year, has become a favorite for mutual funds looking for pre-listing exposure.
- Secondary Market Activity: Since Groww is currently private, domestic AMCs (Asset Management Companies) are increasingly using “secondary windows” to pick up stakes from early employees and angel investors.
- AUM Growth: The accumulation comes as Groww Mutual Fund (the company’s own AMC) crossed an AUM of ₹3,779 crore in February 2026, signaling its successful transition from a broker to a full-stack financial giant.
- Profitability Pivot: Mutual funds are reportedly encouraged by Groww’s performance metrics, which show it sustaining its lead as India’s largest broker by active client count, now surpassing 12 million users.
Comparison of Recent MF Activity (Q1 2026)
| Company | MF Purchase Value (Mar/Apr ’26) | Key Buyer(s) | Market Context |
| Urban Company | ₹862 Crore | SBI Mutual Fund | Lock-in expiry absorption |
| Groww | Undisclosed (Secondary) | Multiple Tier-1 AMCs | Pre-IPO stake building |
| Ather Energy | ~₹202 Crore | Diversified Funds | EV sector conviction |
| Tata Tech | ~₹180 Crore | Midcap/Smallcap Funds | Post-correction recovery |
Why Fund Managers are Doubling Down
- Valuation Realism: After the “small-cap cratering” in March 2026, many tech stocks saw their valuations return to long-term averages, creating an attractive entry point for fund managers like Chandraprakash Padiyar (Tata AMC) and Vinay Paharia (PGIM).
- The “Profitability” Filter: Unlike 2021, the 2026 buying spree is focused on companies that have either turned profitable (like Urban Company in FY25) or have a clear, unit-economic-backed path to it.
- IPO Readiness: For Groww, the stakes are being hiked as the company prepares to list in a market that has shown high appetite for profitable fintech giants.
