Online stock trading platform Groww has signed a definitive agreement to acquire wealth-tech startup Fisdom in an all-cash deal for around $150 million, according to two people with knowledge of the development.
The deal, currently subject to regulatory approval, will mark Groww’s entry into the wealth management segment.
The top leaders of Fisdom will stay on to scale the wealth management segment internally, the people quoted earlier said on the condition of anonymity.
Groww and Fisdom declined to comment on Mint’s queries.
The deal comes a day after Mint reported that Groww will file a confidential draft red herring prospectus within the next two weeks.
Deal follows GIC move, IPO plans
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom offers wealth management including mutual funds, stocks, bonds, and portfolio management (PMS), and tax filing services. Backed by investors such as Prosus, Saama, and Quona Capital, Fisdom has more than 15 offices across India.
Fisdom’s revenue rose 28% on-year to ₹84 crore in FY24, while its losses narrowed to ₹57.4 crore.
The deal marks Groww’s second-largest acquisition after Indiabulls Asset Management Company in May 2023. It follows Viggo Investment Pte. Ltd., an investment entity of Singapore’s sovereign wealth fund GIC, approaching the Competition Commission of India (CCI) for an approval to acquire a 2.143% stake in Groww. The company is expected to be valued at $7 billion after the funding, Mint reported.
The stock trading platform has picked banks including JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd for an initial public offering (IPO). In March, Groww issued compulsorily convertible preference shares as a bonus to existing investors, including Peak XV and Ribbit.
Founded in 2016, the company’s parent Groww Inc. began the process to move its base from Delaware to Bengaluru two years ago. That effectively made Groww’s primary Indian company, Billionbrains Garage Ventures, its parent.