State Street to invest ₹580 crore in Groww Mutual Fund

State Street, the world’s fourth largest asset manager, agreed to invest ₹580 crore in the investment fund unit of Billionbrains Garage Ventures Ltd, the broker’s parent company. Groww.

The transaction includes the purchase of secondary shares worth ₹381 crore and subscription to primary capital ₹199 crore, according to a regulatory filing filed on Wednesday. The share purchase is expected to be completed within six months.

The deal will dilute Billionbrains’ stake in Growth Asset Management Co. by up to 23%, however, State Street Global Advisors Inc.’s voting rights will be limited to 4.99%. Upon completion, the unit will transition from a wholly owned subsidiary to a majority-owned subsidiary.

Groww AMC serves as the investment manager of Groww Mutual Fund. As of January 14, Billionbrains listed it as an intangible subsidiary.

“The investment will enable State Street Investment Management (SSIM) to strengthen its presence in one of the world’s most promising markets and will also enable India-focused investment strategies to be made available to clients globally,” State Street said in a statement. he said.

SSIM serves as the asset management division of State Street Corp. State Street Global Advisors Inc. operates under the SSIM brand.

State Street is the world’s fourth-largest asset manager, with $5.5 trillion in assets under management as of September 2025.

Bloomberg News He was the first to report that State Street was in talks in November Buying shares in an investment fund in India as it seeks to capitalize on the country’s asset management industry.

“This strategic relationship with SSIM gives Groww access to knowledge of quantitative and passive (index) investment management strategies, while allowing us to strengthen our balance sheet to enable us to pursue the next phase of growth and expansion,” Groww said in a statement.

Groww’s Net profit increased by 16% compared to the previous quarter with ₹547 crore in the third quarter ended December revenues growing by 19% ₹1,216 crore. The broker’s EBITDA (earnings before interest, taxes, depreciation, and amortization) in February was: ₹721 crore, up 19% from the previous quarter. Groww’s EBITDA margin remained stable at 59.3% sequentially.

The Bengaluru-based broker reported 1.2 million unique investors and ₹4,119 crore in assets under management as of December.