Groww Eyes PGIM India AMC in Big Asset Management Push

Broking major eyes scale, licences, and products as Prudential looks to exit India AMC business

Stock broking major Groww has reportedly placed a bid to acquire PGIM India Asset Management, signalling a sharper push into the asset management space. According to a Bloomberg report, Groww is competing with Edelweiss Asset Management for the loss-making AMC owned by Prudential Financial.

Talks are ongoing, and a final agreement is yet to be reached. Why does this deal matter now? Because it sits at the intersection of consolidation, scale, and platform-driven finance.

📉 Why PGIM Wants Out

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 AMC has struggled to scale in an increasingly competitive and consolidated market.
• PGIM India reported after-tax losses of over INR 23.5 Cr in FY25.
• Despite losses, it managed assets worth ~INR 26,600 Cr.

In simple terms, the business has assets but lacks momentum—like a car stuck in second gear.

📊 What Groww Gains From The Deal

For Groww, the acquisition would be a strategic leap beyond broking and mutual fund distribution.

• Adds an established AMC platform overnight.
• Brings regulatory licences and a ready-made product suite.
• Accelerates Groww’s ambition to become a full-stack wealth platform.

Is this the fastest route for digital platforms to crack asset management at scale?

🌍 Backed By A Global Partner

Earlier this month, Groww struck a deal with State Street Investment Management (SSIM), which will acquire a 23% stake in Groww’s AMC arm for INR 580.02 Cr.

• INR 381 Cr via secondary share sale.
• INR 198 Cr through fresh equity issuance.

SSIM, the asset management arm of State Street Corporation, is the fourth-largest asset manager globally, with $5.4 Tn AUM as of September 2025. The partnership gives Groww credibility—and firepower.

📈 Groww AMC At An Inflection Point

Groww said its AMC business hit an inflection point last quarter:

• AUM: INR 4,118.8 Cr
• Investors: 12 lakh unique users

The company stressed the need for a global partner with scale and quantitative expertise as Indian markets deepen and passive strategies gain traction.

🧩 Building The AMC Stack

Groww’s asset management journey began in 2023 with the acquisition of the mutual fund business of Indiabulls Housing Finance for INR 175.6 Cr. The PGIM bid, if successful, would mark its most ambitious move yet.

At the group level, Groww reported a 28% YoY decline in PAT to INR 546.9 Cr in Q3 FY26, driven by a one-time long-term incentive provision. Operating revenue, however, jumped 25% YoY to INR 1,216.1 Cr.

Can platform-led finance finally rewrite the AMC playbook in India?

TL;DR

Groww has reportedly bid for PGIM India AMC, competing with Edelweiss to acquire the loss-making but asset-rich business. The deal would fast-track Groww’s AMC ambitions, adding licences and scale, as PGIM exits India after limited growth.

AI summary:

• Groww bids for PGIM India AMC
• Prudential-backed PGIM looking to exit India
• AMC reported FY25 losses but sizeable AUM
• Deal would expand Groww beyond broking
• Follows Groww’s partnership with State Street IM