Investment tech unicorn Groww is reportedly in early-stage discussions to acquire wealthtech startup Fisdom, as part of its broader strategy to expand its offerings into the wealth management sector. According to sources cited by ET, Fisdom, which is likely to be valued between $140 million and $160 million, is currently evaluating multiple term sheets as part of a potential financing round. However, the discussions with Groww are considered strategic, with the company also in talks with other wealthtech startups and offline players for acquisitions.
Founded in 2016 by Subramanya S V and Anand Dalmia, Fisdom is a comprehensive wealthtech platform offering a range of services, including stock and mutual fund investments, portfolio management, tax filing, and wealth management for high-net-worth individuals (HNIs). The startup has raised over $42 million in total funding, including a recent $5 million investment from PayU, which valued Fisdom at approximately $102 million during its last funding round. Other key investors in Fisdom include Quona Capital and Saama Capital.
Fisdom’s current financing activities also involve a potential secondary share sale, where its early investors, including PayU, may sell some of their shares, the report added.
The potential acquisition comes at a pivotal time for Groww, which is gearing up for its much-anticipated initial public offering (IPO). The company, which has emerged as one of India’s leading online investment platforms, is reportedly preparing to file its draft IPO papers by May 2025. Groww’s IPO is expected to raise over $1 billion, marking a significant milestone for the fintech sector.
As part of its IPO preparations, Groww has also proposed issuing bonus compulsorily convertible preference shares to its existing investors, including Peak XV Partners, Ribbit Capital, and Y Combinator. This move is expected to result in a shift in voting rights, with the company’s cofounders—Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal—losing their differential voting rights.
The potential acquisition of Fisdom would align with Groww’s efforts to diversify its portfolio and enter the growing wealth management space, catering to a more affluent clientele. The acquisition could also bolster Groww’s existing services and provide a platform for offering tailored wealth management solutions to high-net-worth individuals (HNIs) and institutional clients.
Fisdom’s established expertise in wealth management for HNIs could complement Groww’s popular offerings in mutual funds, stocks, and exchange-traded funds (ETFs), giving the platform a broader reach and a more comprehensive product suite. As both companies navigate the rapidly evolving wealthtech landscape, this potential merger could reshape the competitive dynamics of India’s growing investment ecosystem.
With Groww’s strategic push to diversify and expand its wealth management offerings, this acquisition would be a critical step in strengthening its position ahead of its impending IPO, further cementing its place as a leader in the Indian fintech space.
