Groww, one of the leading investment platforms, has signed a definitive agreement with Indiabulls Housing Finance to acquire Indiabulls Mutual Fund for ₹175 crore (including cash and cash equivalent of ₹100 crore).
The sale of Indiabulls Asset Management Company will be limited only to the Mutual Fund part of the business, while the Alternate Investment Fund will be demerged and retained by Indiabulls Housing Finance. It plans to grow the Real Estate Asset Management business through AIF structures in line with its asset-light strategy.
Indiabulls MF has asset under management of ₹66,369 crore as of March -end.
A mere 2-3 per cent of India’s population invest in equities, while over 20 crore people have investable income. Groww wants to increase retail participation in equity. It has over 1.5 crore customers on its platform that offers users to invest in mutual funds, stocks and exchange-traded funds.
SEBI recently allowed fintech companies to facilitate innovation, and increase investors reach with technology-based offerings.
Lalit Keshre, CEO, and co-founder of Groww said the plan is to make mutual funds even more accessible by making them simpler, more transparent and lowering the cost further.
Gagan Banga, Vice Chairman and Managing Director, Indiabulls Housing Finance said the decision to divest interest in the retail mutual fund business was taken to consolidate capital and provide greater focus in building the real estate asset management business by way of Alternate Investment Fund.