The transaction will involve only the mutual fund business of Indiabulls Group. The alternative investment fund and portfolio management service business will still remain part of the Indiabulls group.
The country’s leading investment platform Grow (Groww) will buy the mutual fund business of Indiabulls group for Rs 175 crore. The transaction will involve only the mutual fund business of Indiabulls Group. The alternative investment fund and portfolio management service business will still remain part of the Indiabulls group.
Once Groww receives approval from the Securities and Exchange Board of India (SEBI), it will be the first of the fintech companies to start its asset management business.
Can get low cost investment product
“The entry of technology-focused fund houses can give investors more options and lower-cost investment products,” said Lalit Keshre, GRO’s chief executive officer and co-founder. He said, with the ability to make products, we can plan to make mutual funds even easier by making it simpler, more transparent and by reducing costs.
The company will also be able to leverage its investment platform to expand its mutual fund business, which has 1.5 crore customers. However, the distribution platform and mutual fund business is expected to be run as separate businesses.
Grow was started in 2016
In 2016, Gro was created as a start-up. It is supported by Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital.
Grow was started as a platform to invest in mutual funds, but recently it has also ventured into stock broking.
