Groww to Buy Startup Fisdom in All-cash Deal

Time of India

17-05-2025

HighlightsInvestment platform Groww has signed a definitive agreement to acquire wealthtech startup Fisdom in an all-cash deal valued between $140 million and $160 million, pending regulatory approval. Founded in 2015, Fisdom provides various wealth management solutions and has established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank. The acquisition aligns with Groww's strategy to enter the competitive wealth management sector, as it prepares to file its draft red herring prospectus with the Securities and Exchange Board of India for a planned $700 million public listing.
Investment platform
Groww
has signed a definitive agreement to acquire wealthtech startup
Fisdom
in an all-cash deal, subject to regulatory approval, according to people familiar with the matter.
The transaction values Fisdom between $140 million and $160 million, they said.
The acquisition will help Groww, India's largest
stockbroking platform
with 13 million active users, expand its presence in the
wealth management
space.
ET had first reported on the deal on March 13.
Founded in 2015 by Anand Dalmia and Subramanya SV, Fisdom offers wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions.
Following regulatory clearance, Fisdom's founders will continue to run the business, and the current team will stay on in the firm, one of the sources cited above said.
Backed by the likes of
PayU
, Saama Capital and Quona Capital, among others, Fisdom serves over a million customers.
Since inception, it has raised around $48 million, as per data from Tracxn, and was last valued at around $103 million in 2023.
While PayU is the largest shareholder with around 30% stake, Quona Capital's shareholding is at 13.8%. Saama Capital, which had invested around ₹20 crore in the fintech, holds 12.4%.
Fisdom posted revenues of ₹84 crore in FY24, marking a 28% increase from the previous year, while reducing its net losses by 19% to ₹57.4 crore. It achieved Ebitda profitability in the March quarter of FY24.
Fisdom has established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank, helping these lenders sell wealth management products to their customers.
The acquisition of Fisdom will mark Groww's entry into the highly competitive and rapidly growing wealth management sector. This space has been attracting significant investor interest amid the Indian stock market's bull run.
In recent years, players like Centricity, Dezerv and Ioniq Wealth have all secured equity funding to capitalise on this emerging opportunity.
Groww's IPO and funding
The acquisition comes as Groww prepares to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for a planned $700-million public listing.
According to sources, Groww intends to file its DRHP through the confidential route by the end of this month.
The company is also in the process of raising $250-300 million in a funding round led by Singapore's sovereign wealth fund GIC.
On May 15, GIC sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Groww for a $150 million investment. This deal would value Groww at $7 billion, post-money, according to people familiar with the matter.
Launched in 2016, as a mutual fund investment platform, Groww diversified into stocks, IPOs, and ETFs in 2020.