In a release, Groww
said Sebi’s recent change in sponsorship criteria for fintech companies
has enabled it to enter into the asset management space.
MF managed assets worth Rs 664 crore for the quarter ended March 2021.
In December, Sebi had changed the eligibility criteria for sponsoring mutual funds
by allowing entities that didn’t fulfill the profitability criteria to set up a mutual fund provided they had a networth of Rs 100 crore.
Lalit Keshre, CEO, and co-founder of Groww, said, “The regulators have also been forthcoming in enabling new-age fintech startups to enter this space and increase the reach of mutual funds
to the next 100 million retail investors in the country.”
Groww commenced its financial services business in May 2016 and currently is one of the fastest-growing tech platforms for investing in stocks and mutual funds.
Groww is headquartered in Bangalore and backed by marquee investors including Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital.
According to the Keshre, the differentiating factor of Groww compared to other fund houses would be leveraging technology, enhancing customer experience, bringing in a lot more transparency, and reducing cost for the end customer.
The sale of Indiabulls MF will be limited only to the mutual fund part of the business, while the Alternate Investment Fund (AIF) and Portfolio Management Service (PMS) businesses will be demerged from the existing IBAMC structure, and remain under Indiabulls Housing Finance, subject to regulatory approvals.
Gagan Banga, Vice Chairman & MD – Indiabulls Housing Finance, “We have made the decision to divest our interest in the retail mutual fund business to be able to consolidate capital and provide greater focus in building the company’s real estate asset management business by way of Alternate Investment Fund, in line with the company’s asset light strategy.”
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