State Street Closes ₹580 Cr Investment In Groww AMC

Global asset manager State Street Investment Management has completed its ₹580 Cr strategic investment in Groww’s mutual fund arm Groww AMC after receiving all the necessary regulatory approvals. 

The transaction gives State Street a 23% economic interest and 4.85% voting rights in Groww AMC. The two companies first announced the deal in January this year. 

The difference between economic interest and voting rights means State Street is entitled to the financial benefits associated with a 23% holding but has a much smaller say in shareholder voting. At the time of the announcement, Groww had said State Street’s voting rights would be capped at 4.99%. 

Of the total investment, ₹381 Cr was earmarked for the purchase of existing shares, while Groww AMC was to issue fresh shares worth about ₹198 Cr to State Street. The deal valued the asset management business at roughly ₹2,500 Cr. 

Following the completion of the transaction, Groww AMC will cease to be a wholly owned subsidiary of Groww parent Billionbrains Garage Ventures but will continue to be its subsidiary. 

The companies said they would deepen their collaboration across product development, distribution, and access to global markets. Groww AMC will also tap State Street’s expertise in indexing, exchange-traded funds (ETFs), systematic investing, macroeconomic analysis, and portfolio construction. 

The partnership is expected to help Groww AMC expand its passive investment offerings and evolve into a broader asset management platform. Groww also plans to set up a platform in GIFT City to provide Indian investors access to global investment products. 

“Our ambition is to build Groww AMC into one of India’s most trusted and customer-focused asset management companies,” Groww cofounder Harsh Jain said.

“Having State Street Investment Management as an investor and partner brings valuable global experience and perspectives that can help us strengthen our capabilities and build for the long term,” he added.

Groww entered the asset management space after acquiring Indiabulls Housing Finance’s mutual fund business for ₹175.6 Cr in 2023.

Since then, Groww AMC’s quarterly average assets under management have increased to ₹5,777.1 Cr as of June 2026 from ₹4,736 Cr at the end of March, a sequential increase of about 22%, as per AMFI data. Its AUM stood at ₹4,118.8 Cr, with 12 Lakh unique investors, in December 2025.

The AMC offers active and passive funds across equity, debt, hybrid, and commodity categories, including index funds, ETFs, and funds of funds. 

The investment comes as Groww seeks to diversify beyond its core stockbroking business and scale newer offerings such as asset management, margin trading, commodities, and lending. 

For Q1 FY27, Groww’s consolidated net profit jumped 94.3% YoY to ₹735 Cr from ₹378.4 Cr. Its operating revenue surged 66% to ₹1,501.4 Cr from ₹904.4 Cr in the year-ago quarter. 

Shares of Groww were trading 0.73% higher at ₹192.85 on the BSE at 13:10 IST.

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