The acquisition will help Groww, India’s largest stockbroking platform by active users, expand its presence in the wealth management space.
ET had first reported on the deal on March 13.
The transaction values Fisdom between $140 million and $160 million, the sources said.
Founded in 2015 by Anand Dalmia and Subramanya S.V., Fisdom offers wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions. The Bengaluru-based startup, backed by PayU, Saama, and Quona Capital, serves over a million customers through more than 15 offices across India.
The startup has established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank, helping these lenders sell wealth management products to their customers.
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Following regulatory clearance, Fisdom’s founders will continue to run the business, and the current team will remain in place, according to one of the sources.Also Read: Groww in talks to rack up pre-IPO funding at $6.5 billion valuation
Financial performance
Fisdom posted revenue of Rs 84 crore in FY24, a 28% increase from the previous year, while reducing its net losses by 19% to Rs 57.4 crore. The company also achieved Ebdita profitability in the March quarter of FY24.
Groww, launched in 2016 as a mutual fund investment platform, diversified into stocks, IPOs, and ETFs in 2020. The company turned profitable in FY23, reporting revenue of Rs 1,277 crore and a profit of Rs 449 crore. In FY24, Groww’s revenue surged to Rs 3,145 crore with an operating profit of Rs 535 crore. However, it recorded a net loss of Rs 805 crore in FY24 due to a one-time tax payout to US authorities after the reverse flip of its parent entity to India.
Also Read: GIC seeks CCI nod for 2.14% stake in IPO- bound Groww
