News | Groww to Acquire Fisdom in All-Cash Deal, Expanding Wealth Management Footprint

Groww to Acquire Fisdom in All-Cash Deal, Expanding Wealth Management Footprint

News

19 May 2025

2 min read

UBS Forums

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Investment platform Groww has entered into a definitive agreement to acquire wealthtech startup Fisdom in an all-cash transaction valued between $140 million and $160 million. The deal, pending regulatory approval from the Securities and Exchange Board of India (SEBI), signifies Groww's strategic move to broaden its presence in the wealth management sector.

Strategic Expansion into Wealth Management

Founded in 2015, Fisdom offers a range of wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing assistance. The startup has established partnerships with 15 national and regional banks, such as Punjab National Bank and Indian Bank, enabling these institutions to provide wealth management products to their customers.

The acquisition aligns with Groww's objective to diversify its offerings and strengthen its position in the financial services industry. By integrating Fisdom's services, Groww aims to enhance its capabilities in providing comprehensive wealth management solutions to its user base.

Financial Performance and Operational Continuity

In the fiscal year 2023-24, Fisdom reported revenues of ₹84 crore, marking a 28% increase from the previous year. The company also reduced its net losses by 19% to ₹57.4 crore and achieved EBITDA profitability in the March quarter of FY24.

Post-acquisition, Fisdom's founders and existing team are expected to continue managing operations, ensuring continuity for its over one million customers.

Investor Landscape

Fisdom has raised approximately $48 million since its inception, with major investments from entities like PayU, Saama Capital, and Quona Capital. PayU holds around a 30% stake in the company, while Quona Capital and Saama Capital own 13.8% and 12.4%, respectively.

This acquisition comes as Groww prepares for a $700 million initial public offering (IPO) and a $250-300 million funding round led by Singapore's sovereign wealth fund, GIC. The move is indicative of the ongoing consolidation in India's fintech sector, as companies seek to expand their service offerings and customer reach.

Reference: ET BFSI