State Street Investment Management will invest $65 million (Rs 580 crore) in Indian digital investment platform Groww’s asset management arm, according to a regulatory filing.
The capital infusion, expected to be completed in one or more tranches, will provide working capital and fund growth opportunities for Groww Asset Management Company, a subsidiary of Billionbrains Garage Ventures which is backed by the likes of Peak XV Partners and Tiger Global.
The transaction values Groww AMC at around Rs 2,600 crore ($315 million) and is expected to give State Street a 23% stake, pending regulatory approvals, the filing said. Its voting rights will be capped at 4.9%. Groww AMC will remain a subsidiary of its listed parent.
“India stands out as a market of immense opportunity, with a rising middle class, favourable demographics, and a rapid shift toward embracing modern investment products,” said Yie-Hsin Hung, CEO of State Street Investment Management, in a separate statement.
“Our partnership with Groww AMC allows us 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,” she said.
The investment is part of a strategic partnership that complements State Street’s recent equity stakes and product collaborations, enabling the firm to reach new investors, expand its investment capabilities, develop innovative products, and reinforce its commitment to broadening access and delivering solutions to a wide range of investors.
