Groww Strengthens Wealth Management with Acquisition of Fisdom

Groww has become a prominent investment platform after completing the acquisition of Fisdom, a wealth tech startup based in Bengaluru, following approval from the Securities and Exchange Board of India (SEBI). This move allows Groww to bolster its position in the wealth management sector and diversify from its primary stockbroking operations. The company is also looking to minimise its reliance on market-driven trading revenues as it gears up for its public listing.

A recent Moneycontrol report revealed that the deal, which was finalised in May, was an all-cash transaction valued at approximately $150 million. Established in 2015 by Anand Dalmia and Subramanya S.V, Fisdom offers an array of wealth management services, including mutual funds, pensions, and insurance options. Through this acquisition, Fisdom will benefit from Groww’s extensive user base and significant brand recognition within the retail investment landscape.

Financial Performance of Fisdom Pre-Acquisition

According to various sources from a startup data intelligence platform, Fisdom experienced a 28% increase in revenue, reaching Rs 84 crore in FY24. However, it reported a loss of around Rs 57.4 crore prior to the merger.

Groww’s Financial Growth

In contrast, Groww has witnessed impressive financial growth as it prepares for its upcoming initial public offering (IPO). The firm has submitted a revised draft red herring prospectus to SEBI, aiming to raise Rs 7,000 crore through the IPO, which includes a fresh issue of approximately Rs 1,020 crore along with an offer for sale by existing investors. Notable backers such as Peak XV, YC Holding, Ribbit Capital, Tiger Global, and the company’s co-founders are anticipated to sell shares as a part of this offering.

Revenue Increase in FY25

In FY25, Groww reported a remarkable 50% growth in revenue, reaching Rs 3,902 crore, along with a net profit of Rs 1,824 crore, in contrast to a loss of Rs 805 crore in FY24. During the first quarter of FY26, the company generated Rs 904 crore in revenue and registered a profit of Rs 378 crore.

Challenges Faced by Brokerage Platforms

Recently, Groww did not provide any comments regarding this development. The context of this acquisition occurs during a challenging period for brokerage platforms, which are currently facing new tax regulations, diminished exchange incentives, and stricter compliance guidelines, all of which have impacted overall trading activity. Nithin Kamath, the founder of Zerodha, recently pointed out that the company’s brokerage revenue in June 2025 declined nearly 40% year-on-year due to these changing market conditions.