HDFC Securities on September 25 launched a discount broking all-in-one mobile app – HDFC SKY. The app will offer access to Indian stocks, exchange-traded funds, mutual funds, futures and options, currencies, commodities, IPOs, and global equities on a single fintech platform, the company said in a statement.
HDFC SKY is open to all users, unlike HDFC Securities, which allows only HDFC Bank customers to invest or trade.
HDFC Sky is entering the market at a time when online brokerage platforms like Zerodha, Groww, and Angel One hold around 50 per cent of the market share in terms of active clients. These platforms have transformed the way investors and traders participate in the financial markets, bringing costs down and expanding access like never before. Zerodha and Groww are the most prominent online discount broking platforms, with a significant market share.
Last month, PhonePe announced its entry into the stock broking business with the launch of a new mobile application called Share.Market, under its subsidiary, PhonePe Wealth Broking.
Founded in August 2010, Zerodha's disruptive approach introduced flat fees for intraday and delivery trades, making it a discount broker. The platform is shattering the traditional brokerage model despite not being a pure play-zero brokerage player. Zerodha has around 6.3 million active users as of August 2023, according to NSE data. The platform added 33,000 users in the month.
Groww, which started in 2016, initially gained popularity as a mutual fund investment platform. Later, it expanded its services to include stock trading as a discount broker, which attracted a large user base. In 2020, it also launched digital gold, ETFs, intraday trading, and IPOs in quick succession. The Tiger Global-backed company had 6.2 million active users as of August 2023, according to NSE data.
The platform added almost 2.5 lakh active users in August and 3.3 lakh active users in July.
In FY23, Zerodha reported overall revenue of around Rs 6,875 crore and a profit after tax (PAT) of Rs 2,900 crore. The company recorded a revenue of Rs 4,964 crore and a PAT of Rs 2,097 crore in the previous financial year, FY22.
The bootstrapped company manages an overall asset base of Rs 3 lakh crore, making it the largest retail-focused broker.
In FY22, Groww reported total revenue of Rs 427 crore and incurred a loss of Rs 239 crore. In October 2021, Groww raised $251 million at a valuation of $3 billion for geographic expansion and strengthening its team.
Zerodha charges Rs 200 for opening a trading account, whereas Groww offers account opening for free. Zerodha Demat Account AMC charges Rs 300, and Groww Demat Account AMC is free.