US-based State Street Investment to pick 23% stake in Groww AMC in a ₹580 crore deal

Billionbrains Garage Ventures, the parent company of brokerage firm Groww, on Wednesday, January 14, said that the US-based asset manager State Street Investment Management will acquire a 23% stake in its wholly owned subsidiary, Groww Asset Management, for $65 million (₹580 crore).

The investment will be made in one or more tranches, with the total investment comprising ₹381 crore through secondary share purchases and about ₹199 crore in fresh capital, which could dilute Groww AMC's stake up to 23%, it said in a regulatory filing.

It added that Groww AMC has entered into an agreement with State Street Global Advisors Inc., which is an entity that operates under the “State Street Investment Management brand”, for an investment into the Bengaluru-headquartered firm.

Following this, the US-based firm has agreed "to invest up to ₹580 crore for a secondary purchase and primary subscription of shares resulting in dilution of up to 23% of the fully diluted share capital of Groww AMC".

After the completion of the transaction, the buyer will not hold more than 4.99% of the aggregate voting power of Groww AMC.

"The purpose of the acquisition is to meet certain working capital needs and pursue further growth opportunities," Groww AMC said.

Commenting on the transaction, Harsh Jain, co-founder and COO, Groww, said, "State Street Investment Management is one of the world's largest asset managers, and we are delighted to welcome them as an investor and strategic partner in Groww AMC. This partnership will enable us to bring global best practices and sophisticated investment products to Indian investors.”

Yie-Hsin Hung, CEO of State Street Investment Management, said the partnership with Groww AMC allows the company to participate directly in the growth of India’s domestic asset management market, deliver a range of investment exposures to a broader population, and build a pipeline of Indian exposures for global distribution.

"The investment will help State Street Investment Management to strengthen its presence in India while also enabling the delivery of Indian-focused investment strategies to its clients globally," the US-based firm said in a statement.

Groww to acquire additional shares in Groww AMC

Groww said that it will acquire additional shares in Groww AMC worth ₹282 crore. However, it added that the transaction will not result in any change in the percentage of its shareholding in Groww AMC.

“Groww AMC will continue to remain a wholly owned subsidiary of the company,” it added.

Groww Q3 results

In a separate filing on Wednesday, Groww reported net profit of ₹547 crore in the third quarter of the 2025-26 financial year (Q3FY26), marking a 28% YoY decline from ₹757 crore it logged in the same period last year.

Despite the fall in profit, its revenue from operations surged 25% to ₹1,216 crore in the December quarter from ₹975 crore in the year-ago period.

Shares of Groww closed 0.62% higher at ₹163.70 per unit on the National Stock Exchange (NSE) on Wednesday.