Groww Eyes to Acquire PayU-backed Fisdom, Values Start-Up At $140Mn

Brokerage platform Groww is reportedly in talks to acquire Fisdom, a PayU‐backed wealthtech startup, according to the Economic Times. Sources suggest that the Bengaluru‐based startup is valued between $140 million and $160 million. This potential acquisition is seen as part of Groww's strategy to expand into the wealth management sector.

The discussions are still in the early stages and Groww is also exploring acquisitions involving other online wealthtech startups and offline firms. Additionally, Fisdom's early investors, including PayU, are reportedly looking to sell some of their stakes through a secondary share sale or a fundraising round.

“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.

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Fisdom

Fisdom, an automated investment service provider, was founded in 2016 by Subramanya S V and Anand Dalmia. The platform manages personalised online investment accounts that users can access from their PC, tablet or smartphone anytime and anywhere.

As part of Fisdom's ongoing fundraising round with private equity investors, significant secondary sales from its existing owners are expected. Sources indicate that some early investors are looking to partially exit the company.

By acquiring Fisdom, Groww aims to enter the wealth management sector, which has seen increased activity in recent times. It recently raised $5 million from PayU at a post‐money valuation of approximately $102 million. To date, the company has secured over $42 million in total funding, with investors including Quona Capital and Saama Capital.

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Groww IPO

Meanwhile, Groww is preparing for its initial public offering (IPO). According to sources, the company plans to file its draft IPO documents by May this year, potentially valuing the business at $6–8 billion—more than double its $3 billion valuation in 2021.

Groww is expected to raise approximately $700 million through its proposed listing, joining a wave of modern companies entering public markets.

Earlier, the startup had proposed issuing bonus convertible preference shares to its existing investors, including Peak XV Partners, Ribbit Capital and Y Combinator. As part of this move, Groww's co‐founders, Harsh Jain, Lalit Keshre, Neeraj Singh and Ishan Bansal would also forfeit their differentiated voting rights.