New Delhi, Jan. 14 -- Billionbrains Garage Ventures Ltd., the parent company of online discount stock broker Groww, has signed definitive agreements to bring in US-based investment firm State Street Investment Management (formerly State Street Global Advisors) as an investor in its asset management arm, Groww Asset Management Ltd. (Groww AMC).

State Street will invest up to Rs 580 crore (around $55 million) in Groww AMC, according to a disclosure with public market exchanges. The Boston-headquartered asset manager will own 23% of the AMC, implying a valuation of about Rs 2,600 crore (close to Rs 288 million) for Groww AMC.

Following the transaction, Groww AMC will cease to be a wholly owned subsidiary of Groww but will continue to remain a subsidiary of the listed parent company.

State Street's investment will be a mix of primary capital infusion and secondary share purchases. The investment includes up to Rs 198.7 crore as fresh capital into Groww AMC, with the remaining amount of up to Rs 381.3 crore going towards secondary share purchases from the parent entity. State Street's voting rights in Groww AMC will be capped at 4.99%.

Separately, Billionbrains Garage Ventures will invest up to Rs 282 crore into Groww AMC to support working capital requirements and future growth. The company said this internal capital infusion will not change its ownership percentage prior to the completion of the external transaction.

Groww said the partnership will support the expansion of its asset management business while allowing it to retain strategic and operational control.

Groww AMC acts as the investment manager to Groww Mutual Fund. As of March 31, 2025, the AMC reported income of Rs 17.1 crore and net worth of Rs 177.1 crore, contributing a small share to the group's consolidated financials.

Groww had acquired Indiabulls' mutual fund business in May 2023 for Rs 175 crore, when the business managed assets worth Rs 342 crore.

The transaction is subject to regulatory approvals and fulfilment of customary closing conditions and is expected to be completed within six months.

State Street Investment Management is the asset management arm of State Street Corporation, which manages over $5.4 trillion in assets and provides investment services to institutional clients globally.

Published by HT Digital Content Services with permission from VC Circle.