Groww In Talks To Buy Wealthtech Startup Fisdom

Investment tech unicorn Groww is reportedly in talks to acquire wealthtech startup Fisdom as part of its plans to enter the wealth management space to expand its offerings.

Fisdom is likely to be valued at $140 Mn to $160 Mn, ET reported, citing sources. However, the discussions are at an initial stage and Groww is also in talks with other online wealthtech startups and offline companies for acquisition.

“Fisdom has been in the market for raising a financing round and is evaluating a few term sheets… But now there is a strategic interest from Groww which is also being considered,” a source was quoted as saying in the report. 

Besides, Fisdom’s early investors, including PayU, are also looking to sell some shares in the startup via a secondary share sale or a funding round, the report added.

Founded in 2016 by Subramanya S V and Anand Dalmia, Fisdom is a wealthtech platform that lets users invest in stocks and mutual funds. It also offers portfolio management services and tax filing and wealth management services for HNIs.

The startup last raised $5 Mn from PayU at a post-money valuation of about $102 Mn. Overall, it has raised a total funding of over $42 Mn to date. It also counts Quona Capital and Saama Capital among its investors.

The development comes at a time when Groww is gearing up for its initial public offering (IPO). 

It is said to be looking to file its draft papers by May this year for an over $1 Bn IPO.

Ahead of this, the unicorn recently proposed issuing bonus compulsorily convertible preference shares to its existing investors Peak XV Partners, Ribbit Capital and Y Combinator. The transaction would also result in Groww cofounders Harsh Jain, Lalit Keshre, Neeraj Singh and Ishan Bansal losing their differential voting rights.