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Stock broking major Groww has reportedly placed a bid to acquire PGIM India Asset Management as it looks to deepen its presence in the asset management space.
As per a report by Bloomberg, the company is competing with Edelweiss Asset Management for the loss-making Indian AMC owned by US-based Prudential Financial. Talks are ongoing and a final agreement is yet to be reached.
Inc42 has reached out for comments on the development, the story will be updated based on the responses.
Important to mention that PGIM is looking to exit its Indian asset management business after limited growth since acquiring it from Deutsche Bank AG nearly a decade ago. The unit has struggled to scale meaningfully in a market that has become increasingly competitive and consolidated.
PGIM reported after-tax losses of more than INR 23..5 Cr for its India operations in FY25. Despite the losses, the firm managed assets worth approximately INR 26,600 Cr.
For Groww, the potential acquisition would mark a significant step beyond its core broking and mutual fund distribution business.
The Bengaluru-based company has been steadily building its asset management arm, and buying PGIM India AMC would add an established AMC platform, regulatory licences and an existing product suite.
Earlier this month, Groww announced that it has entered a deal with global asset manager State Street Investment Management (SSIM) for the latter to acquire a 23% stake in Groww’s asset management arm by investing INR 580.02 Cr in a mix of primary and secondary capital.
SSIM is the asset management division of the US-based State Street Corporation and the fourth largest asset manager globally. Its assets under management (AUM) stood at $5.4 Tn as of September 2025.
SSIM will invest INR 381 Cr in Groww AMC via secondary share sale, while the AMC will issue fresh shares worth INR 198 Cr to the asset manager.
Groww said that the AMC business stood at an inflection point at the end of the quarter, with an AUM of IN 4,118.8 Cr and 12 Lakh unique investors. With the strong growth in the Indian market, the company said it was important to choose a global partner with well-established scale and credibility.
“This strategic relationship with SSIM allows Groww to access knowledge regarding quantitative and passive investment strategies whilst strengthening our balance sheet to enable us to pursue the next phase of growth and expansion,” it said.
It is also worth noting that Groww entered the asset management space after acquiring the mutual fund business of Indiabulls Housing Finance for INR 175.6 Cr. The deal fructified in 2023.
At the group level, Groww reported a 28% YoY decline in consolidated profit after tax (PAT) to INR 546.9 Cr in Q3 FY26 due to the impact of a one-time long-term incentive provision. Operating revenue jumped 25% YoY and 18% QoQ to INR 1,216.1 Cr in Q3 FY26.
Shares of Groww ended Friday’s trading session 2.16% higher at INR 177.05.
The post Groww Bids To Acquire PGIM India AMC To Strengthen AMC Unit: Report appeared first on Inc42 Media.
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