What is the news on grow acquiring Indiabulls mutual funds?
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Recently in May 2021, Nextbillion Technology, which operates a wealth management platform called Groww, has agreed with Indiabulls Housing Finance Ltd to acquire its mutual fund business of its subsidiaries: Indiabulls Trustee Company Ltd, and Indiabulls Asset Management Company Ltd for a valuation of Rs 175 crore.
Under this deal, grow will invest cash equivalent to Rs 100 crore, which is subject to mandatory approvals by the Securities and Exchange Board of India (SEBI). We expect that the transaction will be completed by June 30, 2022.
The company also cleared that sale would only be limited to the mutual fund, and the other components i.e., alternate investment fund (AIF) and portfolio management services (PMS), will remain under the control of IBHFL, subject to regulatory approvals.
Groww was looking to create newer investment products, so, with this merger, they could make mutual funds easy, reliable, and less expensive for their customers. So, we can call it a faster go-to-market strategy. Groww has a good presence in two-tier and geographies, so it would also help them keep distribution costs lower.
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