Groww agrees to acquire Fisdom in $150 million all-cash deal

19 May 2025, 04:18 PM

The acquisition, which is pending regulatory approval from Sebi, is expected to finalise within two to three months.

Team Head&Tale

Stock broking firm Groww has reportedly signed a definitive agreement to acquire wealthtech startup Fisdom for $150 million, in an all-cash deal. 

The acquisition, which is pending regulatory approval from the Securities and Exchange Board of India (SEBI), is expected to finalise within two to three months.

The announcement comes at a time when Groww is preparing to file its draft red herring prospectus with Sebi.

While both Groww and Fisdom are registered stock brokers, Fisdom is also a portfolio management services (PMS) licence holder. 

Groww is also reportedly entering into wealth management and is expected to start offering these services through a separate arm under the brand 'W'. The new unit will cater to high-net-worth individuals (HNIs) by offering portfolio management services (PMS) and alternative investment funds (AIF) to its 15 million users across its broking and mutual fund businesses.

Groww began as a direct mutual fund investment platform, expanding into stock trading. Groww also runs an asset management company besides providing credit through a non-banking financial company.

Fisdom’s existing shareholders include Nasper’s PayU, which owns around 25% stake. Quona Capital and Saama Capital are also investors in Fisdom. The startup, founded by Subramanya SV and Anand Dalmia in 2015, has raised $47 million in total funding till date. During FY24, Fisdom reported Rs 84.3 crore in revenues and a net loss of Rs 57.4 crore. 

Founded in 2016 by four Flipkart executives, Groww is one of the largest stock broking firm and has more than 50 million customers. It includes Microsoft chief executive officer Satya Nadella, Ribbit Capital, Tiger Global, Peak XV among its investors. 

Recently, the Bengaluru-based stock broking platform moved its domicile from the US back to India -- which also saw its fair market valuation being reduced to under $2 billion, down from its previous $3 billion. It paid Rs 1,340 crore ($160 million) in taxes to the US government during the process of bringing back its parent entity to India, based on this new valuation.

Groww's revenue from operations surged to Rs 3,145 crore in FY24, up from Rs 1,435 crore in FY23. The stockbroking platform reported a net loss of Rs 805 crore in FY24, largely due to a one-time tax payment of Rs 1,340 crore for relocating its domicile to India. Despite this, the company remained operationally profitable, with profits of Rs 535 crore in FY24 compared to Rs 458 crore in FY23. in the wealth management segment.