Desperation knows no bounds. Just ask Groww.

The country’s largest stockbroker is aggressively positioning itself as more than just a broker ahead of its public listing. It’s acquiringThe Economic TimesGroww to acquire Fisdom in a $150 million all-cash deal wealth-tech startup Fisdom for $150 million. The company is also reportedly workingThe Economic TimesGroww to enter wealth management business with unit ‘W' on a wealth-management unit called “W”, exclusively for the rich. Earlier in May, it filed confidential IPO papers with the market regulator, and is said to be eyeing a near-billion-dollar public offer.

Over 90% of Groww’s topline comes from the broking business. So why the haste to diversify now?

For starters, this isn’t a great time to be a broker in India. The regulatory squeezeThe KenNSE’s monopoly is on borrowed time as Sebi squeezes its star player on futures-and-options (F&O) trading—the mainstay for discount brokers like Groww, Zerodha*, and Angel One—has hit them hard. This, combined with a weakness in the market, resulted in brokers’ trading volumes falling by up to 40%.

Companies bledThe KenAngel One got what it wished for. That’s the problem. Enthusiasm made way for concern. Many of them have been losing active clients for months now. Just in April, Groww lost nearly 75,000 of them. Zerodha’s dropped by 50,000.

Essentially, the broking business is no longer as lucrative as it was a year ago, said an analyst tracking the space.

That aside, the company also has to fight a perception challenge.

Groww’s public issue is expected to value the company at $7–8 billion. That’s because its latest funding round—in which Singapore-based sovereign wealth fund GIC is investing nearly $150 million—values it at around $7 billion. Anything below that in the IPO would be a loss of face, even unacceptable, for both Groww and its pre-IPO investors like GIC.