Groww has shown promising growth in recent times. It is one of the popular wealth management firms to help small cities’ investors. In a recent development on Tuesday, the startup has revealed that it has agreed with Indiabulls Housing Finance Ltd(IBHFL) to acquire their mutual funds’ operations for Rs 175 crore.
Groww Acquires IBHFL’s Mutual Funds Portfolio
Groww has IBHFL had signed an agreement where Groww will take over the mutual funds(MF) business of IBHFL’s subsidiaries Indiabulls Asset Management Company Limited (IAMCL) and Indiabulls Trustee Company Limited. Groww will pay Rs 175 crore to acquire MF business.
Out of Rs 175 crore, grows will transfer cash equivalent of Rs 100 crore. The deal document has been sent to the Securities and Exchange Board of India(Sebi) for final approval.
In its filings with the Bombay Stock Exchange, IBHFL further stated that the transaction will be concluded by June 30, 2022.
Other than mutual funds, Indiabulls Asset Management firm also has two major operations: alternative investment fund(AIF) and portfolio management service. These two services will now be under IBHFL.
The current acquisition will help Groww to offer a variety of mutual funds and other products. It will help the startup in expanding its portfolio.

IBHFL and Groww Plans After the Deal
Talking about the future of Groww, Lalit Keshre, CEO and co-founder of Groww, said:
“Over the last five years, we have made investing simple and transparent for retail investors across the length and breadth of the country. We have experienced the power of technology in enabling the access of financial services to even those who do not live in metros or who are not HNIs. With the capability to create products, we plan to make mutual funds even more accessible by making them simpler, more transparent, and by lowering the cost further.”
Indiabulls is also quite happy with the current deal. Now, the firm will give its 100% to the real estate management business.
In its filings, IBFHL said:
“The real estate asset management business is complementary to the core business of the company and the sponsor (IBFHL) plans to grow this business in partnership with the global player(s). Therefore, the mutual fund business does not remain a core focus area for the company.”
Talking about real estate and AIF services, Gagan Banga, vice chairman, and managing director, Indiabulls Housing Finance, said:
“We have decided to divest our interest in the retail mutual fund business to be able to consolidate capital and provide greater focus in building the company’s real estate asset management business by way of AIF, in line with the company’s asset-light strategy.”
Recently, Groww has established itself as a trustworthy investment platform among tier II and tier III cities of India. The startup claims to have 15 million+ users with 250,000 investment plans available online. In the last 6 months, the firm has added 7 million users to its online platform. Overall, 60% of Groww subscribers belong to small cities in India. The startup recently got unicorn status also.