Indian fintech giant Groww is set to acquire wealth management firm Fisdom for around $150 million (INR 1,250 crore) in an all-cash deal. This strategic move, which requires regulatory approval, will enable the investment platform to expand its services into the wealth management sector.
Founded in 2015, Fisdom has established itself through a B2B2C distribution model, offering services such as mutual funds, tax filing, and insurance. The company has formed partnerships with several banks, including Punjab National Bank, Indian Bank, and Bank of Maharashtra, to extend its reach across various customer segments.
The acquisition is expected to complement Groww’s existing retail-focused offerings by integrating Fisdom’s B2B partnerships, thereby enhancing Groww’s presence in Tier 2 and Tier 3 markets. This move aligns with Groww’s objective to broaden its distribution network and strengthen collaborations with traditional financial institutions. Reports indicate that Fisdom’s investors, such as Quona Capital, Elevation Capital, and PayU, are anticipated to exit the company as part of the transaction. Additionally, Fisdom’s management team, including co-founder and CEO Subramanya S V, may join Groww post-acquisition, ensuring continuity and leveraging their expertise in the wealth management sector.
Groww, backed by investors like Tiger Global, Sequoia Capital, and Ribbit Capital, has emerged as a leading digital investment platform in India, focusing on direct mutual fund investing and stockbroking services. The acquisition of Fisdom is seen as a strategic step to diversify Groww’s service offerings and solidify its position in the competitive fintech landscape. This development reflects a broader trend of consolidation in India’s wealth tech segment, as firms aim to enhance user engagement, expand product suites, and build customer trust in a highly regulated environment. The deal is expected to close in the coming weeks, subject to necessary regulatory and board approvals.
By integrating Fisdom’s capabilities, Groww aims to offer a more comprehensive suite of financial services, catering to a wider audience and reinforcing its commitment to simplifying investment and wealth management for its users.
