State Street to Acquire 23% Stake in Groww AMC for ₹580 Crore

U.S.-based State Street Global Advisors (SSGA), one of the world’s largest asset managers, has entered into definitive agreements to acquire a 23% stake in Groww Asset Management Limited for ₹580.03 crore (around $65 million), marking a strategic entry into India’s fast-growing retail mutual fund ecosystem.

The investment was announced on January 14, 2026, and will be executed through a combination of secondary share purchases and primary capital infusion, the company said.

As part of the structure, State Street’s voting power will be capped at 4.99%, even though it will hold 23% economic interest in Groww AMC.

Deal structure: mix of secondary purchase and fresh capital

According to disclosures, the total ₹580.03 crore transaction includes:

• ₹381.35 crore through secondary share purchases from parent entity Billionbrains Garage Ventures
• ₹198.68 crore as fresh capital infused into the AMC through a primary subscription

The transaction is subject to regulatory approvals and is expected to close within about six months, as per reporting.

Scaling passive and quant strategies

Groww AMC, the investment manager for Groww Mutual Fund, has grown rapidly in India’s digital investing wave. The fund house had AUM of more than ₹4,100 crore as of December 2025, according to reporting.

The capital infusion is expected to support working capital needs and build out product segments such as:

• passive/index strategies
• quantitative investment products
• distribution and operational scale

“This partnership allows us to participate directly in the growth of India’s domestic market,” said Yie-Hsin Hung, CEO of State Street Global Advisors, according to statements cited in reports.

Parent performance: headline profit down, operating metrics stronger

The deal also comes as Groww’s parent company Billionbrains Garage Ventures reported Q3 FY26 results.

The company reported:

• total income rising 26% YoY to ₹1,261 crore
• consolidated net profit down 28% YoY to ₹547 crore

Management clarified that the YoY profit decline was largely due to a one-time post-tax gain of ₹315 crore in the base quarter (Q3 FY25). Excluding this exceptional item, adjusted operating performance improved, according to reporting.

Summary

State Street Global Advisors has signed definitive agreements to acquire a 23% stake in Groww AMC for ₹580.03 crore, structured through a mix of secondary share purchases and primary capital infusion. State Street’s voting power will be capped at 4.99%. The partnership aims to scale Groww AMC’s passive/index and quantitative strategies as India’s retail mutual fund participation expands. The announcement came alongside Billionbrains Garage Ventures’ Q3 FY26 results, where total income rose to ₹1,261 crore while headline net profit declined due to a high base effect from a one-time gain last year.

Frequently asked questions (FAQs)

Q1: Who is investing in Groww AMC?

State Street Global Advisors (SSGA), the asset management arm of State Street Corporation, is the strategic investor in the deal.

Q2: What is the deal value?

The investment totals ₹580.03 crore, split between secondary share purchases and fresh capital infusion.

Q3: Will Groww AMC still remain a subsidiary of Billionbrains?

Yes. Billionbrains will remain the majority shareholder even after dilution of up to 23%.

Q4: Why is State Street’s voting power capped at 4.99%?

The structure is designed to limit voting/control influence while allowing minority economic participation, as disclosed in reporting.

Q5: What is Groww AMC’s current scale?

Groww AMC’s AUM was reported at over ₹4,100 crore as of December 2025.