Groww, a Bengaluru-based wealthtech company in India, has seen its mutual fund assets under management (AUM) surge to nearly ₹2,000 crore, marking a 2.5x year-on-year growth. The rise follows its acquisition of Indiabulls AMC and comes just as the firm confidentially files for an IPO with SEBI.
Bengaluru-based Groww, one of India’s largest online investment platforms, has witnessed a sharp rise in its mutual fund assets under management (AUM), which reached approximately ₹1,940 crore in May. This 2.5x year-on-year surge marks significant momentum in its mutual fund business following its acquisition of Indiabulls Asset Management Company Ltd, now renamed Groww AMC.
In May 2023, when Groww completed the acquisition of Indiabulls AMC, the AUM stood at just ₹342 crore. This growth showcases the platform’s strong investor traction, particularly in direct mutual fund offerings like Groww Nifty Index and Groww Liquid Funds.
The company is rapidly expanding its wealthtech footprint. In addition to managing its own mutual funds, Groww also acts as a distributor for third-party mutual funds. The platform has steadily drawn in long-term investors through its SIP-focused strategy before scaling into equity broking.
Groww, which recently filed confidentially for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI), also raised $200 million from Iconiq Capital and GIC, valuing the firm at $7 billion.
Unlike its competitor Zerodha, whose AUM reached ₹6,400 crore (primarily from ETFs), Groww’s growth has been driven by equity index funds and SIPs, indicating its focus on retail savers rather than traders.
The firm’s financial performance has been robust, reporting a three-fold rise in profit to ₹1,819 crore and a 31% jump in revenue to ₹4,056 crore for FY25, despite regulatory and taxation headwinds in the broking sector.
In a strategic move to diversify further, Groww has also agreed to acquire wealthtech startup Fisdom in a $150 million all-cash deal, reinforcing its commitment to holistic wealth management solutions for retail investors across India.
As Groww gears up for its IPO, its continued emphasis on education-driven customer acquisition, a wide range of direct mutual fund offerings, and steady product innovation positions it as a frontrunner in India’s growing investment landscape.
