Groww has invested ₹104.4 crore in its wealth management subsidiary Fisdom through a rights issue, according to a recent filing by parent entity Billionbrains Garage Ventures. The company subscribed to 87,384 shares priced at ₹11,954.94 each. Since Fisdom is already fully owned by Groww, the additional infusion does not change its shareholding pattern. The capital commitment was part of the Share Purchase Agreement signed on May 16, which required Groww to extend further funding for payouts and working capital.

Groww Fisdom Investment

Fisdom was acquired by Groww in October for roughly ₹961 crore. The platform extends Groww’s presence in the broader wealth management space by offering mutual funds, insurance, portfolio management services, alternative investment funds, unlisted securities and stockbroking. The company reported ₹166.3 crore in revenue last year and is close to breakeven, although it continues to record net losses. The deal also added a team of 500 employees, including a strong sales force, and introduced advisory-led offerings such as a portfolio management service built around mutual funds with a direct-fee model.

The latest investment comes as Groww works to rebalance its revenue mix and reduce reliance on the futures and options segment. In the September quarter, derivatives contributed 57 percent of revenue, compared with 68 percent a year earlier. New regulations issued by the Securities and Exchange Board of India have led to a sharp decline in F&O activity across the industry and have trimmed Groww’s revenue by an estimated Rs 203 crore so far in the current financial year.

Revenue Mix Shifts

Fisdom is expected to play a central role in Groww’s attempt to deepen its presence among affluent customers. This segment has been expanding rapidly, rising 52 percent year-on-year, and now accounts for 34 percent of the platform’s total assets. Groww aims to strengthen its advisory-led services to counter the volatility caused by regulatory changes affecting high-risk segments such as derivatives trading.

The infusion also follows Groww’s strong debut in the public markets. The stock listed at a premium and later saw a significant rally. In its first quarterly results after listing, Groww reported a 12 percent increase in net profit to ₹471.3 crore in the September quarter. Operating revenue, however, fell 9.5 percent to ₹1,018.7 crore due to the regulatory tightening that has reduced activity in key revenue-generating categories.

The company has been focusing on stabilising earnings by expanding its fee-based wealth services through Fisdom. The acquisition provides Groww with a broader product stack and a larger distribution network, helping the platform engage deeper with higher-income customers seeking diversified financial products. Fisdom’s near-breakeven performance and its access to Groww’s user base are expected to support future monetisation as the combined entity pivots toward more stable, advisory-led revenue.

Customers Rise

Industry analysts note that the broader shift in India’s retail investing landscape is prompting brokerage platforms to diversify into wealth management to offset volatility in derivatives-led income. Groww’s latest capital support to Fisdom is seen as part of this wider trend, with brokerages strengthening recurring-fee businesses and expanding product depth to appeal to investors seeking long-term financial planning solutions. The rights issue allows Fisdom to maintain growth momentum as it scales its advisory capabilities and onboards new customers from Groww’s rapidly expanding base.

The additional funding is also expected to help Fisdom expand its investment products and strengthen technology infrastructure. With regulatory changes reshaping the earnings profile of major brokerages, Groww’s strategy centres on combining transactional investing with long-term wealth solutions. Fisdom’s contribution is likely to increase as the firm moves closer to profitability and leverages the broader platform’s distribution reach.