New Delhi: Fintech platform Groww is all set to buy the mutual fund business of Indiabulls Housing Finance (IBHFL) for Rs 175 crore. The deal has also received a nod from the Competition Commission of India (CCI).
For the transaction, the two wholly-owned subsidiaries of Indiabulls - Indiabulls Asset Management Company Ltd (IMACL) and Indiabulls Trustee Company Ltd (ITCL) - entered into an agreement in May 2021 with Groww’s parent firm Nextbillion Technology.
The transaction is aimed at divestment of mutual fund business carried out by the two entities of Indiabulls. Divestment of the mutual fund business is expected to help Indiabulls in focussing on its retail estate asset management business.
"In furtherance...The Competition Commission of India (CCI) has pursuant to a communication letter dated September 9, 2021, approved the transaction," IBHFL said in a regulatory filing.
Founded in 2016, fintech startup Groww offers a slew of financial services, including stock and mutual fund investments. It is also one of the leading online stock brokerage platforms in India.
The Bengaluru-based startup is backed by a score of investors such as Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital. It currently caters to more than 1.5 crore users in over 900 cities in India. Also Read: Lost job during pandemic? ESIC to provide unemployment benefits till June 2022
The deal is expected to be completed on or before June 30, 2022. Also Read: 19,000 apps on Google Play Store found unsafe, could even leak your personal data
- With PTI inputs.
