Groww, India’s largest brokerage firm by active investors, has entered into a definitive agreement to acquire wealth management startup Fisdom in an all-cash deal valued at approximately $150 million. The transaction is subject to regulatory approval from the Securities and Exchange Board of India (SEBI) and is expected to close within the next 2-3 months.
🚀 Strategic Expansion into Wealth Management
This acquisition marks a significant step for Groww as it aims to bolster its presence in the wealth management sector. By integrating Fisdom’s offerings, Groww plans to diversify its product portfolio beyond its core brokerage services. The move aligns with Groww’s strategy to provide a comprehensive suite of financial services to its users.
🧠 About Fisdom
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom offers a range of digital wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions. The company has over a million customers and operates through 15 offices across India. In FY24, Fisdom reported revenue of ₹84 crore, a 28% increase from the previous year, and achieved EBITDA profitability in the March quarter of FY25.
📈 Groww’s Growth Trajectory
Groww, established in 2016 by former Flipkart employees, has rapidly expanded its offerings from mutual funds to include stocks, derivatives, fixed deposits, and US stocks. The company reported a consolidated revenue of ₹3,145 crore in FY24, more than doubling from the previous year. Its operational profit rose 17% to ₹535 crore during the same period.
💰 Pre-IPO Funding and Valuation
Ahead of its planned initial public offering (IPO), Groww is raising $150 million in a pre-IPO funding round led by Singapore-based investment firm GIC, valuing the company at approximately $7 billion post-money. This funding is part of a larger $250-300 million round expected to close within the next two weeks.
🔍 Regulatory Approval and Future Outlook
The acquisition is pending approval from SEBI and is anticipated to finalize within 2-3 months. Post-acquisition, Fisdom’s founders and team are expected to continue operating the business, ensuring continuity and leveraging their expertise to scale Groww’s wealth management offerings. Business Standard
