Groww invests Rs 104.4 crore in wealth management platform Fisdom

India's top stock broking platform Groww has invested Rs 104.4 crore in Fisdom through a rights issue, according to a filing by its parent, Billionbrains Garage Ventures.

The company subscribed to 87,384 shares at Rs 11,954.94 each. Since Fisdom is already a wholly-owned subsidiary, the investment does not alter its ownership structure. The rights issue was a commitment under the Share Purchase Agreement signed on May 16, which required Groww to provide additional capital to support payouts and working capital needs.

Groww completed its acquisition of Fisdom in October for about Rs 961 crore. Fisdom brings a wider wealth portfolio offering mutual funds, insurance, PMS, AIFs, unlisted securities and stockbroking.

The platform generated Rs 166.3 crore in revenue last year and is close to breakeven, though it continues to post losses. The acquisition also brought in a 500-member team, including a large sales force, and introduced advisory-led products such as a “PMS of mutual funds” with direct-fee billing.

The fresh investment comes at a time when Groww is rebalancing its revenue mix. Derivatives contributed 57% of revenue in the September quarter, down from 68 percent a year earlier. New SEBI rules have sharply affected F&O trading and have reduced Groww’s revenue by about Rs 203 crore so far this fiscal year.

Fisdom plays a central role in this shift by helping Groww deepen its presence among affluent customers. Their numbers are rising rapidly, growing 52 percent annually, and now account for 34% of total platform assets.

The infusion also comes soon after Groww’s strong public market debut. The company listed at a premium, followed by a sharp rally. In its first results as a public company, Groww reported a 12% rise in net profit to Rs 471.3 crore in the September quarter, even as operating revenue declined 9.5% to Rs 1,018.7 crore due to tighter regulations.