Online investment platform Groww is about to enter the mutual fund business. The digital platform said on Tuesday that it has signed a deal to acquire Indiabulls Mutual Fund for Rs 175 crore.
The deal includes a cash equivalent of Rs 100 crore and is subject to regulatory approvals by SEBI.
"Over the last five years, we have made investing simple and transparent for retail investors across the length and breadth of the country. 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," Lalit Keshre, the chief executive and co-founder of Groww, said.
The billion-dollar startup expects the deal to conclude by June 30, 2022.
If the deal gets regulatory approval, Groww will become the first fintech player to enter the asset management space.
Groww claims it has 15 million users, with 250,000 SIPs opened every month on its platform.
As of March 2021, Indiabulls MF was managing assets worth Rs 664 crore.
