State Street closes Rs 580-cr Groww AMC deal

Bengaluru: Global asset manager State Street Investment Management has completed its Rs 580-crore investment in Groww Asset Management Company, acquiring a 23% economic stake in the mutual fund business of investment platform Groww.The transaction, valued at about $65 million, was first announced in January and was completed after the necessary regulatory approvals, Groww said on Monday. State Street will hold voting rights of 4.8% in Groww AMC.The investment brings State Street into partnership with Groww as the Indian company seeks to expand beyond its core online stockbroking business.Groww said the two companies will work together on developing investment products, strengthening distribution and exploring ways to provide Indian investors wider access to international markets. The partnership is expected to focus on index funds, exchange-traded funds, or ETFs, and other products aimed at retail investors.“Having State Street Investment Management as an investor and partner brings valuable global experience and perspectives that can help us strengthen our capabilities and build for the long term,” Groww cofounder Harsh Jain said.Groww AMC is also planning to develop an offering through GIFT City, Gujarat’s international financial services hub. The proposed platform could help Indian investors access overseas investment opportunities, subject to regulatory approvals.The Bengaluru-based company entered the mutual fund industry after acquiring Indiabulls Asset Management Company in 2023. It has since launched a range of active and passive mutual fund schemes.The State Street deal forms part of Groww’s wider plan to build more financial-services businesses around its large retail-investor base. Growth in the brokerage business has moderated after a sharp expansion in retail market participation in recent years, prompting platforms to look at newer revenue streams such as mutual funds, wealth management and advisory.Groww recently acquired wealth-management platform Fisdom for Rs 961 crore and has been building W, a service designed for affluent investors.Get the latest Business News and Live updates. Download the TOI app.