Fintech giant Groww has apparently decided to splurge some cash by acquiring wealth-tech startup Fisdom in a deal that’s all about the Benjamins, sources say. The acquisition, still awaiting the nod from regulators, is estimated to value Fisdom at a cool $140-160 million. This move is set to give Groww a leg up in the wealth management game, expanding its already impressive range of offerings. And get this – it’s not even their first rodeo! Remember when Groww acquired Indiabulls AMC back in May 2023? Yeah, this is their second big move since then.
Who are these folks, you ask? Well, Fisdom, founded by Anand Dalmia and Subramanya SV in 2015, is all about managing that wealth. From mutual funds to stocks, bonds, portfolio management services, and even tax filing solutions, they’ve got it all. With the backing of big names like PayU, Saama, and Quona Capital, Fisdom serves a whopping one million customers through more than 15 offices spread across India. And hey, they’ve got partnerships with 15 banks, including the likes of Punjab National Bank and Indian Bank, to help those banks push wealth management products to their clients.
Now, let’s talk numbers. Fisdom raked in ₹84 crore in revenue in FY24, showing a 28% jump from the previous year. And get this – their net losses dropped by 19% to ₹57.4 crore. They even hit EBITDA profitability in the March quarter of FY24. Looks like they’re doing something right, huh? But let’s not forget about Groww. They started out in 2016 as a mutual fund investment platform and have been on a roll ever since. By 2023, they were rolling in the dough with revenue hitting ₹1,277 crore and profits of ₹449 crore. Fast forward to FY24, and Groww’s revenue skyrocketed to ₹3,145 crore with an operating profit of ₹535 crore. Not too shabby, right? And hey, let’s not forget their acquisition of Indiabulls AMC in May 2023. Now, with Fisdom in their corner, Groww is all set to dominate the wealth management scene.