State Street, the world’s fourth-largest asset manager, has agreed to invest ₹580 crore for a 23% stake in the mutual fund unit of Billionbrains Garage Ventures Ltd, the parent of broker Groww.
The transaction involves secondary share purchases worth ₹381 crore and a subscription to primary capital worth ₹199 crore, according to a regulatory filing on Wednesday. The share purchase is expected to be completed in six months.
The deal will dilute Billionbrains’s stake in Groww Asset Management Co. by up to 23%, though State Street Global Advisors Inc.’s voting power will be capped at 4.99%. Upon completion, the unit will transition from a wholly owned subsidiary to a majority-owned subsidiary.
State Street is acquiring the 23% stake by valuing Groww’s asset management business at ₹2,522 crore.
“We don’t have plans to dilute any more stake in our AMC as of now,” Harsh Jain, co-founder and chief operating officer at Groww, told Mint. There are a lot of synergies between the two firms, he said.
“Our plan is to build up the AMC business at global standards, and State Street was the right partner since they are also betting big on India,” he said.
Groww AMC acts as the investment manager to Groww Mutual Fund. As of 14 January, Billionbrains listed it as a non-material subsidiary.
“The investment will enable State Street Investment Management (SSIM) to strengthen its presence in one of the world’s most promising markets while also enabling the delivery of Indian-focused investment strategies to its clients globally,” State Street said in a statement.
SSIM serves as the asset management division of State Street Corp. State Street Global Advisors Inc. is an entity that operates under the SSIM brand.
State Street is the fourth largest asset manager globally, with $5.5 trillion in assets under management as of September 2025.
Bloomberg News was the first to report in November that State Street was in talks to acquire a stake in an Indian mutual fund as it sought to tap into the nation’s asset management industry.
“This strategic relationship with SSIM allows Groww to access knowledge regarding quantitative and passive (index) investment management strategies whilst strengthening our balance sheet to enable us to pursue the next phase of growth and expansion,” Groww said in a statement.
Groww’s Jain said the State Street partnership offers multiple possibilities. “One such possibility is for State Street’s distribution network to have an option for our products,” he said. “But this is an avenue we will have to work on as and when the demand comes in.”
Groww’s net profit rose 16% quarter-on-quarter to ₹547 crore in the third quarter ended December, while the revenue grew 19% to ₹1,216 crore. The broker’s Ebitda (earnings before interest, taxes, depreciation and amortization) stood at ₹721 crore, up 19% from the previous quarter. Groww’s Ebitda margin remained sequentially flat at 59.3%.
The Bengaluru-based broker reported 1.2 million unique investors and ₹4,119 crore in assets under management as of December.
