Skip to content
Technology — Finance — Stocks — Business — Defi — Market — Exchange — Investing — Portfolio

Wealth-tech platform Fisdom gets bought out by Groww for a whopping $150 million.

Groww Sets To Acquire Fintech Platform Fisdom for $150 Million in a Cash-Only Deal, Strategizing Before scheduled IPO, Aiming at $7 Billion Valuation and $1 Billion IPO Proceeds Upon Reporting Rs 3,145 Crore Revenue in FY24. The acquisition will reinforce Groww's wealth management services and...

,   and  Administrator
3 min read
Groww secures Fisdom, a wealth-tech platform, in a $150M cash purchase. This transaction bolsters...
Groww secures Fisdom, a wealth-tech platform, in a $150M cash purchase. This transaction bolsters Groww's financial management services and widens capabilities through Fisdom's bank affiliations. Anticipating a $7B valuation, Groww aims for a $1B IPO following the projection of Rs 3,145 crore in revenue by FY24.

Wealth-tech platform Fisdom gets bought out by Groww for a whopping $150 million.

Taking Over Fisdom for $150M: Groww's expansion into the wealth-tech arena ahead of IPO.

Hey there! Guess what? Groww, the renowned wealth-tech unicorn, is all set to take over Fisdom in an all-cash deal. The amount? A whopping $150M, subject to regulatory approval, of course! The move comes as Groww prepares to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the next 10-14 days[2][3].

Insider Scoop: We've got sources telling us that this is Groww's second major acquisition after buying Indiabulls Asset Management Company (AMC) back in May 2023[3]. Seems like Groww's expansion strategy is pretty solid, isn't it?

Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom provides digital wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions. Such a brilliant catch for Groww, don't you think?

One anonymous source close to the matter told us that this strategic move should bolster Groww's capabilities and offerings in the wealth management sector[4]. Apparently, Fisdom serves over one million customers through more than 15 offices across India[2] and has backing from top-notch investors like Prosus, Saama, and Quona Capital[2].

The cherry on top? Fisdom's established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank[2], are expected to gift Groww some valuable distribution channels.

According to reports, Fisdom's FY24 revenue stood at Rs 84 crore, marking a 28% increase from the year before, and they managed to reduce their net losses by a significant 19% to Rs 57.4 crore. whoa, right? Not only that, but Fisdom apparently achieved EBITDA profitability in the March quarter of FY24[2].

The acquisition comes as Groww is looking to raise approximately $200-250 million in a pre-IPO funding round led by Singapore's sovereign wealth fund GIC. This investment, estimated to be around $150 million, could potentially value Groww at around $7 billion post-money[3]. Now that's a big leap from its last private market valuation of $3 billion in 2021!

Furthermore, GIC has already sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Groww through an affiliate entity[3]. That's a lot of investment and interest, isn't it?

Groww has reportedly been working on going public for some time now. In November last year, it even shifted its domicile from the US to India, to make the listing process smoother in India[2]. Some sources suggest that Groww's IPO could potentially raise over $1 billion[3], with the company aiming for a valuation between $6-8 billion[3]. Could this all-important step strengthen Groww's presence in the ever-expanding wealthtech market, don'tcha think?

Interestingly, Groww started life as a mutual fund investing platform in 2016, but it hasn't stopped there. The company has grown exponentially by introducing stocks, IPOs, and ETFs in 2020. As of April 2023, it maintained its leadership position with a market share exceeding 26%[2]. That's pretty impressive, right?

In FY24, Groww reported an impressive revenue of Rs 3,145 crore with an operating profit of Rs 535 crore[2]. The acquisition of both Indiabulls AMC and Fisdom is expected to help build Groww's wealth management and asset management businesses.

But like always, remember, we're just a humble assistant here to share the news! ¯_(ツ)_/¯

CCI, SEBI, Wealth Management, Share Market, Stock Market Quotes, India News, business news, our website App, NSE

  1. Groww's acquisition of Fisdom for $150M marks a significant step in the wealth-tech company's expansion, preparing for an anticipated IPO.
  2. The move bolsters Groww's capabilities in the wealth management sector, as Fisdom offers digital solutions for mutual funds, stocks, PMS, and tax filing services.
  3. Fisdom's partnerships with multiple banks offer Groww valuable distribution channels, potentially boosting its presence in the market.
  4. The deal follows Groww's earlier acquisition of Indiabulls Asset Management Company, signifying a strong expansion strategy in the finance and technology-driven industry.
  5. As Groww's portfolio grows, its focus on stocks, mutual funds, and FinTech solutions demonstrates its commitment to investing in the ever-evolving realm of business and technology.

Read also:

    Related

    Latest