Why did Indiabulls Housing Finance sell its mutual funds business to Groww?

You are right that Indiabulls Housing Finance will divest its mutual fund AMC business in favour of Groww for a consideration of Rs.175 crore. Groww is an online investment platform which has got substantial funding from large PE funds like Sequoia and Ribbit and has been looking to put this cash stash to good use. MF buying gives a good opportunity.

One thing is clear that Indiabulls wants to focus its bandwidth on real estate business only and remain asset light. The deal with Groww represents the new model for mutual funds where the line between the distributor and the originator is thinning. Groww is basically an online investment platform that facilitates investments in stocks and other asset classes.