IPO-bound Groww completes Fisdom acquisition, a wealth-tech platform, after receiving approval from the Securities and Exchange Board of India (SEBI). The Bengaluru-based fintech finalized its $150 million all-cash deal to acquire Fisdom, marking one of the largest transactions in India’s digital wealth management space this year.
This acquisition strengthens Groww’s position as India’s largest brokerage by user base, expanding its offerings beyond trading into mutual funds, PMS, stocks, and tax solutions. The move comes as Groww prepares for its highly anticipated Initial Public Offering (IPO), positioning it as a diversified wealth-tech leader.
Fisdom’s wealth-tech platform playbook
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom operates as a full-service wealth-tech platform, offering mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions. With over 1 million customers and 15 offices across India, Fisdom is backed by investors like Prosus, Saama, and Quona Capital.
In FY24, Fisdom reported ₹84 crore in revenue, a 28% increase over the previous year, while reducing its losses by 19% to ₹57.4 crore. By acquiring Fisdom, Groww gains both a strong advisory capability and a physical presence, complementing its digital-first offerings.
Groww’s financial performance
With the Groww completes Fisdom acquisition, the company continues to showcase strong financials. In FY25, Groww reported a three-fold jump in profit to ₹1,819 crore, alongside a 31% revenue growth to ₹4,056 crore, according to regulatory filings.
Groww started in 2016 as a mutual fund platform and expanded into stocks, ETFs, and IPOs by 2020. Its growing SIP (Systematic Investment Plan) portfolio and in-house mutual fund offerings allow it to diversify revenue streams and reduce reliance on volatile stock trading.
Integrating Fisdom’s services strengthens Groww’s position as a comprehensive wealth-tech platform, appealing to investors looking for both advisory and self-directed investment solutions.
Strategic benefits of the acquisition
The Groww completes Fisdom acquisition at a crucial pre-IPO stage. By adding Fisdom, Groww can cross-sell services, expand its customer base, and deepen product offerings in wealth management. Analysts see this as a strategic move, boosting investor confidence and highlighting Groww’s long-term growth potential.
This merger positions Groww as not just a trading app but a full-stack wealth-tech platform, creating an edge over competitors in India’s digital investing space.
Challenges in the brokerage sector
Despite strong growth, the broking sector faces headwinds. Higher taxes on trading, stricter SEBI rules, and declining exchange incentives have slowed retail participation. Leading brokers have reported three consecutive months of decline in active investors, signaling cautious market sentiment.
However, by acquiring a wealth-tech platform like Fisdom, Groww reduces dependency on trading fees and builds a resilient revenue model for the future.
Outlook
As Groww completes Fisdom acquisition a wealth-tech platform, it strengthens its product suite and positions itself as a top fintech contender ahead of its IPO. With strong financials, a growing user base, and diversified offerings, Groww is ready to lead India’s next wave of digital wealth management.
The upcoming Groww IPO is expected to attract strong investor interest, given the company’s profitability, expansion strategy, and the addition of Fisdom’s complementary services.