New Delhi, Jan 14 (PTI) US-based asset manager State Street Investment Management will acquire a 23 per cent stake in Groww Asset Management for USD 65 million (Rs 580 crore), in a move aimed at strengthening its presence in India, the asset management arm of Billionbrains Garage Ventures said on Wednesday.
The investment will be made in one or more tranches. The total investment comprises Rs 381 crore through secondary share purchases and about Rs 199 crore in fresh capital, which could dilute Groww AMC's stake up to 23 per cent.
"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.
Separately, in a stock exchange filing, Groww AMC said it has entered into an agreement with State Street Global Advisors Inc, 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 Rs 580 crore for a secondary purchase and primary subscription of shares resulting in dilution of up to 23 per cent of the fully diluted share capital of Groww AMC".
After the completion of the transaction, the buyer will not hold more than 4.99 per cent 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.
Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, reported a 28 per cent year-on-year decline in profit after tax at Rs 547 crore in the quarter ended December 2025 from Rs 757 crore in the corresponding quarter of the previous fiscal.
Despite the fall in profit, total income during the quarter rose 26 per cent to Rs 1,261 crore, compared with Rs 1,004 crore in the year-ago period.