Groww, India’s largest brokerage firm by active investor base, has signed a definitive agreement to acquire wealth management startup Fisdom in a $150 million all-cash deal. This strategic acquisition comes at a pivotal time, just weeks before Groww plans to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) through the confidential route with market regulator Sebi.
The acquisition of Fisdom aims to bolster Groww’s wealth management portfolio, diversify its revenue streams, and strengthen its product lineup, particularly as it navigates a volatile market and prepares for a public listing. According to a source familiar with the development, the deal still awaits Sebi’s approval and will likely take two to three months to close.
Strategic Expansion Through Acquisition
Groww’s acquisition of Fisdom signals a deliberate effort to solidify its presence in the broader financial services market beyond equities and mutual funds. The 100% acquisition will integrate Fisdom’s wide-ranging product suite—mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions—into Groww’s platform.
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom currently serves over a million customers across 15 Indian cities. It has built a loyal customer base and attracted funding from marquee investors such as Prosus, Saama Capital, and Quona Capital. In FY24, Fisdom posted ₹84 crore in revenue, marking a 28% increase year-over-year. The company also reduced net losses by 19% to ₹57.4 crore and reported EBITDA profitability in Q4 FY25.
Groww plans to leverage Fisdom’s diversified offerings and customer base to scale its wealth management operations quickly, especially in Tier 2 and Tier 3 cities, where demand for affordable and accessible financial advice continues to rise.
Funding from GIC Strengthens Financial Position
Simultaneously, Groww secured $150 million in fresh funding from Singapore-based sovereign wealth fund GIC, taking the company’s post-money valuation to $7 billion. This funding forms part of a larger pre-IPO round valued between $250 million and $300 million, which Groww expects to close within the next two weeks.
With this capital injection, Groww strengthens its balance sheet, ensures liquidity ahead of its IPO, and prepares itself for scaling operations post-listing. The funding round underscores investor confidence in Groww’s business model, growth trajectory, and capacity to compete in an increasingly regulated broking environment.
IPO Plans Amid Market Uncertainty
Groww’s IPO preparations begin during a challenging period for the brokerage industry. Market volatility, changing investor sentiment, and tighter regulatory scrutiny have dampened activity. Yet, Groww continues to build momentum, maintaining leadership in terms of active user base and operational performance.
The company intends to list at a valuation between $7 billion and $8 billion. While this valuation appears conservative for a fast-growing, tech-driven platform, Groww acknowledges prevailing market sentiments and aims to offer a balanced proposition to public market investors.
Unlike traditional brokerage firms that depend heavily on equity trading volumes, Groww has diversified its revenue sources. Its offerings include mutual fund distribution—both third-party and proprietary—systematic investment plans (SIPs), IPO participation, and digital gold. This revenue diversification shields the company from downturns in stock trading, which remain sensitive to market cycles and investor moods.
Financial Performance and Resilience
Groww posted robust financial results in FY24. The company more than doubled its consolidated revenue to ₹3,145 crore, up from ₹1,435 crore in FY23. Operational profit increased 17% year-on-year to ₹535 crore from ₹458 crore, indicating strong cost management and a scalable model.
Despite healthy operational metrics, the company reported a net loss of ₹805 crore in FY24. This resulted from a one-time domicile tax of ₹1,340 crore, incurred during the relocation of its registered office from Delaware, USA, to Bengaluru, India. This strategic move aligns the company’s corporate structure with Indian regulatory frameworks in preparation for its IPO.
Groww has demonstrated resilience through its financial performance. It has continued to attract users, expand revenue, and remain profitable at an operational level—even as broader market trends turned unfavorable.
Industry Challenges and Competitive Landscape
Groww’s IPO journey begins during a tough phase for the broader brokerage industry. New regulations have impacted profitability, especially for players heavily reliant on futures and options (F&O) trading. Regulatory bodies have introduced curbs on retail F&O trading to protect retail investors from excessive risk, which has affected revenue across the sector.
Other headwinds include proposed increases in securities transaction tax (STT), lower exchange rebates, and reduced interest income from customer margin balances. All these factors have squeezed margins for broking firms.
As a result, leading players such as Zerodha, Angel One, and Upstox have experienced declines in active users. In April 2025, Groww lost approximately 75,000 active investors, while Zerodha lost over 55,000. This marked the fifth consecutive month of declining user counts for some of the largest brokers.
Angel One, the only listed brokerage among the top four, reported a 49% drop in net profit for the quarter ending March 2025, posting ₹175 crore compared to ₹340 crore in the same quarter last year. Its revenue also fell by 22%, from ₹1,357 crore to ₹1,056 crore. These numbers highlight the pressure on traditional revenue models and underscore the need for diversification—something Groww has proactively pursued.
Competitive Advantage Through Diversification
Groww’s strategy hinges on building a comprehensive financial services platform rather than focusing solely on equity trading. By integrating Fisdom’s offerings, Groww aims to create a one-stop shop for retail investors, covering everything from tax planning to PMS and insurance advisory in the future.
This horizontal expansion gives Groww a distinct edge over peers that continue to rely on volatile trading revenues. The company also focuses heavily on user experience, education, and accessibility, which has helped it penetrate deep into underserved markets.
Additionally, Groww has consistently reinvested earnings into product development, customer acquisition, and regulatory compliance. This forward-looking approach has earned it a loyal user base and made it a preferred choice for first-time investors.
Outlook and Conclusion
With the acquisition of Fisdom and fresh funding from GIC, Groww steps into its IPO journey with strengthened financials, diversified offerings, and strategic clarity. The $150 million acquisition gives it an immediate edge in wealth management, while the funding supports scalability and product innovation.
As it gears up to become a listed entity, Groww must continue navigating regulatory shifts, market volatility, and competitive pressures. However, its strong track record, operational profitability, and user-first approach provide a solid foundation for long-term success.
In an industry facing disruption and transformation, Groww stands out as a company that adapts, scales, and innovates. Its IPO will mark a significant milestone—not just for the company but also for India’s evolving fintech ecosystem.