In a recent development within the discount brokerage sphere, Bengaluru-based fintech startup Groww has surpassed Zerodha to become India's leading brokerage by the number of active investors.
As per data from the National Stock Exchange (NSE), Groww boasted an impressive 6.63 million active investors at the close of September 2023, edging past Zerodha, which reported 6.48 million active investors during the same period. Groww's exponential growth can largely be attributed to the surge in customer base which has increased by a staggering 750 percent since March 2021. Whereas Zerodha's user base, although substantial, has exhibited a more gradual rate of growth, even experiencing some stagnation over the past few years.
By the end of the fiscal year 2023, Zerodha boasted a customer base of 6.39 million, whereas Groww reported 5.37 million users. Notably, Groww has undergone remarkable expansion, surging from approximately 0.78 million customers in the fiscal year 2021 to 3.85 million in the fiscal year 2022, and further to 5.78 million investors in the fiscal year 2023. This impressive growth has also attracted strong contenders, including HDFC Bank, which introduced the Sky discount broking app.
The absence of account opening or annual maintenance fees has largely contributed to the rising popularity of venture capital-backed platforms such as Groww and Upstox. On the other hand, PhonePe, boasting a user base of more than 200 million actively engaged in payment services, has made an entry into the investment arena as well.
Meanwhile, during FY23, Nextbillion Technology Private Limited, the company behind Groww, clocked up a revenue of Rs 1,294 crore, marking a remarkable growth of over three times compared to the Rs 367 crore it had reported in FY22. It has also delivered a net profit of Rs 73 crore.