Groww Acquires Bengaluru-Based Wealth Tech Startup Fisdom with SEBI Approval

Investment platform Groww has completed the acquisition of Bengaluru-based wealth tech startup Fisdom after receiving regulatory approval from the Securities and Exchange Board of India (SEBI). The acquisition, originally signed in May, was an all-cash deal valued at around $150 million.

About Fisdom

Founded in 2015, Fisdom offers wealth management services including mutual funds, pensions, and insurance. The merger provides Fisdom access to Groww’s large retail user base and brand recognition in the investment space. 

According to startup data intelligence platform TheKredible, Fisdom reported a 28% revenue increase to ₹84 crore in FY24, while posting a loss of around Rs 57.4 crore prior to the merger.

Context of the Acquisition

The move comes during a challenging phase for brokerage platforms. New tax rules, reduced exchange incentives, and stricter regulations have impacted overall trading activity. Reports indicate that some brokerage firms have experienced a decline in trading revenue by nearly 40% year-on-year in June 2025, highlighting the pressure on stock-focused businesses.

Expanding Beyond Stockbroking

With this acquisition, Groww aims to strengthen its presence in the wealth management sector, moving beyond its core stockbroking business. The platform is looking to reduce its reliance on market-linked trading revenues, particularly as it prepares for its upcoming public listing.

Groww’s Financial Performance

Groww has reported strong financial growth ahead of its initial public offering. The company recently filed a revised draft red herring prospectus with SEBI to raise ₹7,000 crore through its IPO, which includes a fresh issue of about ₹1,020 crore and an offer for sale by existing investors. Key backers are expected to offload shares as part of the offering.

In FY25, Groww reported a 50% rise in revenue to ₹3,902 crore and a net profit of ₹1,824 crore, compared with a loss of ₹805 crore in FY24. In the first quarter of FY26, the platform earned ₹904 crore in revenue and ₹378 crore in profit, demonstrating continued momentum ahead of its listing.

Read more:Groww IPO: Company Files Updated DRHP with SEBI for ₹7,000 Crore Issue

Conclusion

The acquisition of Fisdom allows Groww to diversify its offerings, strengthen its wealth management portfolio, and potentially offset the effects of reduced brokerage revenues. By integrating Fisdom’s services, Groww is positioned to expand its footprint in mutual funds, pensions, and insurance, while leveraging its existing user base for growth in a broader financial services ecosystem.

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