State Street Investment Management announced a strategic minority investment in Groww Asset Management Limited, the asset‑management arm of India’s Groww platform. The investment totals up to ₹580 crore (about $65 million), comprising ₹381 crore in secondary share purchases and ₹199 crore in primary subscription of new shares. The transaction will dilute Groww AMC’s fully diluted share capital by up to 23% and will give State Street a voting stake of no more than 4.99% of the aggregate voting power.
The deal is subject to regulatory approval from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India, with completion expected by September 2026. It marks State Street’s first direct equity stake in an Indian asset‑management company, although the firm had previously invested $50 million in smallcase in May 2025. The investment gives State Street a pipeline of Indian exposures that can be offered to its global institutional clients and expands its presence in a market projected to become the world’s largest wealth‑management hub.
Groww entered the mutual‑fund business in 2023 after acquiring the asset‑management company from Indiabulls. In the year ended March 31, 2025, Groww AMC reported an income of ₹17.09 crore and an AUM of ₹4,118.8 crore, with 12 lakh unique investors as of December 2025. The new capital will support the platform’s scaling of mutual‑fund operations and enhance its investment capabilities.
State Street’s Alpha platform, launched in December 2020, is a front‑to‑back asset‑servicing ecosystem that integrates custody, technology, and investment management. The Groww partnership aligns with the Alpha strategy by adding a high‑growth emerging‑market asset‑management client to the platform and by leveraging State Street’s regulatory compliance expertise to accelerate Groww’s expansion.
Management comments underscore the strategic fit. Yie‑Hsin Hung, CEO of State Street Investment Management, said the partnership “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.” Harsh Jain, COO of Groww, added that the investment “will enable us to bring global best practices and sophisticated investment products to Indian investors, strengthening our long‑term commitment to building a world‑class asset‑management platform in India.”
The deal is expected to generate new fee revenue for State Street through the distribution of Indian‑focused strategies and to deepen its footprint in a market that is projected to become the largest wealth‑management hub by 2030. The investment also signals State Street’s broader strategy to expand into emerging markets and to use its Alpha platform to create a single ecosystem for custody, technology, and investment management.
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