Indiabulls Housing Finance said on Tuesday it has decided to divest its mutual fund business to investment platform Groww for Rs 175 crore.
Indiabulls Mutual Fund is one of India's largest housing finance companies having a net worth of over Rs 16,500 crore. The company is engaged in providing home loans and loans to small business owners.
Indiabulls Housing said it plans to focus management bandwidth and consolidate capital towards real estate asset management business in line with its asset-light strategy.
The company expects the transaction with Groww to conclude by June 30, 2022.
Groww started its financial services business in May 2016 and is one of the leading tech platforms for investing in stocks and mutual funds.
Headquartered in Bengaluru and backed by marquee investors including Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital, Groww is presently serving over 1.5 crore users across 900-plus cities across India.
The entry of a technology-focused fund house can give investors more options and low-cost investment products.
( With inputs from ANI )
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