Groww, one of the leading investment platforms, will be taking over the mutual fund business of Indiabulls group for Rs 175 crores. The transaction will only include mutual fund business of the organization.
The other substitute investment funds and portfolio management service businesses will still remain part of the Indiabulls group.
The company stated that once the approvals will be given from the securities and exchange Board of India (SEBI), it will be one of the first companies to commence its own asset management business.
Meanwhile, the sources also suggest that the entry of a technology-focused fund house could give investors more options and low cost investment products.
The founder of Groww Lalit Keshre said that- “With the capability to create products, we plan to make mutual funds even more accessible — by making them simpler, more transparent, and by lowering the cost further”.
The organization is also thinking to take advantage of its investment platform. It has 1.5 crore customers to expand its mutual fund business. However, the distribution platform and the mutual fund business are expected to be run as separate businesses.
Groww which was formed as a start-up back in 2016. The company is backed by investors Tiger Global, Sequoia Capital India, Y combinator and Ribbit capital. The company was first commenced out as a platform for investing in mutual funds. But, currently it entered into the stock broking as well.
