According to a filing by its parent, Billionbrains Garage Ventures, Groww has invested ₹104.4 crore in Fisdom via a rights issue.
The company purchased 87,384 shares at ₹11,954.94 each. As Fisdom is already fully owned, the investment does not alter the ownership structure. The rights issue was mandated under the Share Purchase Agreement signed on May 16, obliging Groww to provide extra capital for payouts and working capital.
Groww acquired Fisdom in October for around ₹961 crore, bringing a wider array of wealth management products to its platform, including mutual funds, insurance, PMS, AIFs, unlisted securities, and stockbroking.
The platform recorded ₹166.3 crore in revenue last year and is close to breaking even, though it remains unprofitable. The acquisition contributed a 500-member team, including a large sales division, and launched advisory-led products such as a “PMS of mutual funds” billed directly to clients.
Groww’s latest investment comes amid efforts to diversify its revenue mix. Derivatives revenue fell to 57% in the September quarter from 68% a year ago. New SEBI guidelines have curtailed F&O trading, lowering Groww’s revenue by about ₹203 crore so far this fiscal year.
Fisdom is helping Groww deepen engagement with affluent investors, growing at 52% year over year and currently accounting for 34% of total platform assets.
The investment comes shortly after Groww’s successful debut in the public markets. The company listed at a premium, followed by a strong rally. In its first quarterly results as a public company, Groww reported a 12% increase in net profit to ₹471.3 crore for the September quarter, even as operating revenue fell 9.5% to ₹1,018.7 crore due to tighter regulations.
