Online investment platforms Groww is set to acquire Indiabulls AMC and Trustee Company for a consideration of Rs 175 crore. The transaction is subject to SEBI and other regulatory approvals.
The sale of Indiabulls Asset Management Company will be limited only to the Mutual Fund part of the business, whilst the Alternate Investment Fund (AIF) and Portfolio Management Service (PMS) businesses will be demerged from the existing IBAMC structure, and remain under Indiabulls Housing Finance, subject to regulatory approvals.
Groww is one of India’s leading investment platforms. With this acquisition, Groww will become one of the first fintech companies to enter the asset management space.
"Today, a mere 2-3% of India’s population is investing in equities, while more than 20 crore people have investable income. Groww wants to change that and foster a culture of investing in the country to increase retail participation in equity. Groww has more than 1.5 crore customers on its platform that offers users to invest in mutual funds, stocks and exchange-traded funds (ETFs)," says the release.
SEBI’s recent change in sponsorship criteria for fintech companies to facilitate innovation, and increase reach to investors with technology-based offerings, has enabled Groww to enter into the asset management space.
