Groww, one of India’s leading investment platforms, will take on the Indiabulls group’s mutual fund business by 175 crore.
The transaction will only involve the joint venture business of the Indiabulls group. Other investment funds and portfolio management services businesses will remain part of the Indiabulls team.
Once Groww has obtained approval from the Securities and Exchange Board of India (SEBI), it will be one of the first fintech companies to start its own asset management business.
The introduction of a technology-focused fund house can give investors more options and less expensive investment products.
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“By being able to create products, we plan to make shared funds more accessible – by simplifying them, making things more transparent, and by reducing costs further,” said Lait Keshre, chief executive and founder of Groww.
The company will also be able to take advantage of its investment platform, which has 1.5 crore customers, to grow its corporate fund business. However, the distribution platform and the mutual fund business are expected to be run as separate entities.
Groww, built as a start back in 2016, is backed by investors Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital.
Initially, Groww started out as an investment platform for mutual Funds, but recently also got into stock trading.
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