According to regulatory filings, Groww recorded a threefold increase in earnings to Rs 1,819 crore in FY 25. Additionally, it announced that its sales for FY 25 increased by 31% to Rs 4,056 crore.
According to those familiar with the situation, Groww, the nation’s biggest brokerage by users, has successfully acquired wealth management company Fisdom after last week’s clearance by the Securities and Exchange Board of India, the country’s market regulator.
Groww, a Bengaluru-based company that filed the updated IPO paperwork last month, had agreed in May to pay $150 million in all cash to buy wealth management firm Fisdom.
Moneycontrol reached out to Groww for comment, but he did not reply
The transaction, which is Groww’s second major acquisition after acquiring Indiabulls AMC in May 2023, is anticipated to increase the company’s wealth offerings.
In contrast to the other big brokerage houses, Groww has a sizable client base and a robust portfolio of mutual funds, including its own, as well as systematic investment plans (SIPs), which helps to diversify income and protect it from any decline in stock trading.
The wealth playbook of Fisdom
Anand Dalmia and Subramanya S.V. founded Fisdom in 2015, and it provides tax filing services, stocks, bonds, mutual funds, and portfolio management services (PMS). The organization has 15 locations around India, serving more than a million consumers. Investors including Prosus, Saama, and Quona Capital support the business.
In FY24, Fisdom reported sales of Rs 84 crore, a 28% increase over FY19, and a 19% decrease in net losses to Rs 57.4 crore.
Groww’s financials
Groww started up as a mutual fund investment platform in 2016 and then included equities, initial public offerings (IPOs), and exchange-traded funds (ETFs) in 2020.
According to regulatory filings, Groww recorded a threefold increase in earnings to Rs 1,819 crore in FY 25. During FY 25, the company’s sales increased by 31% to Rs 4,056 crore.
Brokers are struggling
Due to certain rules that have harmed the sector, Groww’s IPO process is beginning at a challenging moment for the majority of brokers. All four of the leading brokers have seen a reduction in active investors for the third consecutive month as a consequence of the unfavorable investor mood.
Since late last year, broking businesses have had to deal with tighter regulations on retail futures and options trading, smaller exchange rebates, and increased trade taxes.