Groww, India’s largest online stockbroking platform by active users, has signed a definitive agreement to acquire wealthtech startup Fisdom in USD 150 million (~INR 1,284 crore), as it looks to enter the wealth management space before its planned IPO.
The deal values Fisdom between USD 140 to 160 million (~INR 1,369 crore) and is subject to regulatory approvals including from SEBI. This acquisition will help Groww move beyond retail trading and mutual fund distribution into more comprehensive financial advisory and wealth management services.
Groww-Fisdom Acquisition: Overview
Groww was founded in 2016 and initially focused on mutual fund distribution before rapidly expanding into stocks, IPOs and ETFs. With over 13 million active users, it is India’s most used brokerage platform. Fisdom acquisition will further strengthen Groww’s presence across a broader range of financial products and services.
Fisdom was founded in 2015 by Anand Dalmia and Subramanya SV. It has built a full-stack digital wealth management platform offering mutual funds, stocks, bonds, PMS and tax filing solutions. The company has also developed a strong B2B2C presence by partnering with 15 national and regional banks including Punjab National Bank and Indian Bank to distribute wealth products.
Post acquisition, Fisdom’s leadership and team will continue to be on board and will have operational independence while integrating into Groww’s ecosystem.
Financials and Valuation Upside
Fisdom has raised around USD 48 million (~INR 410 crore) from investors like PayU (30% stake), Quona Capital (13.8%) and Saama Capital (12.4%). It was last valued at USD 103 million (~INR 881 crore) in 2023. The acquisition is a premium of about 45-55% over its last known valuation.
In FY24, Fisdom reported revenues of INR 84 crore, a 28% growth year-on-year while narrowing net losses by 19% to INR 57.4 crore. The company achieved EBITDA profitability in Q4 FY24—a good sign of operational efficiency and scalability.
The acquisition comes at a critical juncture for Groww as it is planning to file a DRHP with SEBI for USD 700 million (~INR 5,992 crore) IPO by end of May.
In parallel, Groww is also raising a USD 250-300 million (~INR 2,568 crore) funding round led by GIC, Singapore’s sovereign wealth fund. GIC has already sought CCI approval to acquire 2.14% stake for USD 150 million (~INR 1,284 crore), valuing Groww at USD 7 billion (~INR 59,900 crore).
This dual track approach—strategic acquisition and pre-IPO funding—will help Groww scale fast, strengthen its balance sheet and offer more financial products to its growing user base.
Market Context
The acquisition also highlights a bigger trend—India’s wealthtech space is heating up with increasing investor participation and demand for financial advisory services. Groww is now in direct competition with other wealthtech players like Centricity, Dezerv and Ioniq Wealth who have recently raised significant funding.
With traditional broking revenues under pressure due to regulatory tightening around futures and options trading, Groww’s foray into fee-based wealth management is a hedge against cyclicality in its core broking business.
Looking Ahead
This is Groww’s second big acquisition after it bought Indiabulls Asset Management Company in 2023. It now manages INR 1,900 crore in AUM across 19 mutual fund schemes. With Fisdom in its fold, Groww can scale up its wealth offerings, leverage Fisdom’s partnerships, regulatory infrastructure and team expertise.
Moreover, as the company gets ready for what could be one of India’s biggest tech IPOs of the year, the Fisdom deal sends a strong message to the market—Groww is not just a trading app but a full-fledged fintech platform aiming to dominate every corner of retail and institutional investments.
Conclusion
Groww’s acquisition of Fisdom is a timely and strategic move, combining its tech-first retail distribution with Fisdom’s wealth management expertise. In a space where traditional broking revenues are under pressure and compliance is increasing, this could be a game-changer as the company goes public.
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