Recently, Nextbillion Technology, the parent which operates affluence management platform, Groww, said it has entered into an authoritative agreement with Indiabulls Housing Finance (IBHFL) to acquire the mutual fund business of its subsidiaries Indiabulls Asset Management Company Limited (IAMCL) and Indiabulls Trustee Company Limited, trustee of IAMCL, for 175 crores.

The compact includes a cash equivalent of 100 crores, to be invested by Groww, and is topic to rigid approvals by the Securities and Exchange Board of India. The business is expected to be accomplished by 30 June 2022, IBHFL stated as a part of its filings with Bombay Stock Exchange (BSE).

The sale of Indiabulls Asset Management Company will be inadequate only to the mutual fund part of the business, while the unconventional investment fund (AIF) and the assortment management service business will be demerged from the accessible arrangement, and linger under Indiabulls Housing Finance, subject to regulatory approvals.

The achievement will now allow Groww to level generate newer investment products, besides its initial model of distributing direct mutual funds on its platform.

Lalit Keshre, chief executive and co-founder of Groww, states, “Over the last five years, we have made investing simple and transparent for retail investors across the length and breadth of the country. We have experienced the power of technology in enabling the access of financial services to even those who do not live in metros or who are not HNIs. With the capability to create products, we plan to make mutual funds even more accessible by making them simpler, more transparent, and by lowering the cost further."

Indiabulls states, “The real estate asset management business is complementary to the core business of the company and the sponsor (IBFHL) plans to grow this business in partnership with the global player(s). Therefore, the mutual fund business does not remain a core focus area for the company."

Gagan Banga, vice chairman and managing director, Indiabulls Housing Finance, states, “We have made the decision to divest our interest in the retail mutual fund business to be able to consolidate capital and provide greater focus in building the company’s real estate asset management business by way of AIF, in line with the company’s asset-light strategy."