Expansion Into Full-Scale Wealth Management
In a move that could significantly alter the Indian mutual fund landscape, Groww has placed a aggressive ₹925 crore bid to acquire the mutual fund business of PGIM.
A Strategic Necessity
Acquiring an established AMC (Asset Management Company) would allow Groww to go beyond being just a distribution platform. It gives the fintech firm the license to manage its own funds, vastly increasing its profit margins per user.
Competition with Zerodha
This move follows Zerodha’s recent entry into the AMC space. The battle for the wallets of Indian retail investors is moving from low-cost brokerage to full-service digital wealth management.
