State Street to Acquire Minority Stake in Groww AMC in INR 580 Cr Deal

US-based asset management firm State Street Investment Management has invested INR 580 crore (about USD 65 million), in Groww Asset Management Limited (Groww AMC), according to an exchange filing by Groww.

Groww AMC is a wholly owned subsidiary of Billionbrains Garage Ventures, the listed parent entity of Groww.

The filing said the proposed transaction comprises nearly INR 381 crore through secondary share purchases and around INR 199 crore as a fresh capital infusion. The investment may result in a dilution of up to 23 percent of Groww AMC's share capital. However, State Street's voting rights in the company will be limited to 4.9 percent. The transaction is expected to be completed within six months, subject to regulatory approvals.

The deal values Groww AMC at about INR 2,600 crore. Following completion, State Street is expected to hold an economic stake of around 23 percent in the asset management company, while Groww will continue to retain ownership and control.

The company said the funds raised through the transaction will be used to meet working capital requirements and to support further growth opportunities. Groww AMC will continue to function as a wholly owned subsidiary of the listed company.

Groww AMC serves as the investment manager for Groww Mutual Fund, which manages several mutual fund schemes.

As of January 2026, Groww Mutual Fund had assets under management of approximately INR 4,200 crore. Groww entered the mutual fund space in May 2023 after acquiring the mutual fund business of Indiabulls for INR 175 crore. At the time of the acquisition, the business had an asset base of INR 342 crore.

Incorporated in 2008, Groww AMC reported revenue of INR 17 crore for the financial year ended March 2025. Since entering the mutual fund segment, the company has gradually expanded its product offerings alongside Groww's broader financial services platform.

Groww has also continued to strengthen its position in the stock broking segment. In December 2025, the company added about 39,500 active demat accounts during the month, taking its total client base to roughly 1.21 crore accounts. During the same period, Groww's market share in the stock broking segment stood at 27.06 percent.

The company announced its financial results for the third quarter of FY26 on the same day. Groww reported a 25 percent year-on-year increase in revenue to INR 1,216 crore for the quarter. However, its profit declined by 28 percent compared with the same period last year to INR 547 crore. At the close of trading today, Groww's shares ended at INR 163.7, giving the company a market capitalisation of about INR 1,01,061.8 crore (USD 11.35 billion).

State Street Corporation, headquartered in Boston, is a global provider of financial services to institutional investors, including investment servicing, investment management, and research and trading services.

As of September 30, 2025, the firm had USD 51.7 trillion in assets under custody and administration and USD 5.4 trillion in assets under management. State Street Investment Management operates as the asset management division of State Street Corporation.