In a significant development in India’s brokerage landscape, Groww, a promising fintech startup hailing from Bengaluru, has outpaced Zerodha to secure the top position in terms of the number of active investors. According to data from the National Stock Exchange (NSE), Groww boasted 6.63 million active investors in September, while Zerodha closely followed with 6.48 million. This impressive feat represents a remarkable transformation since March 2021 when Zerodha had 3.4 million customers and Groww had 0.78 million.
Zerodha has maintained a consistent user base over the years, with 6.3 million users in FY22 and FY23. In contrast, Groww has been on an exceptional growth trajectory, surging from around 0.78 million users in FY21 to 3.85 million in FY22 and an astounding 5.78 million in FY23. This remarkable growth has garnered the attention of strong contenders, including HDFC Bank, which introduced the Sky discount broking app. Additionally, venture capital-backed platforms such as Groww and Upstox have gained popularity due to their fee-free account offerings, while PhonePe, boasting over 200 million active payment customers, has also entered the investment realm with its Share.Market platform.
As of the end of September, the nation had approximately 12.97 crore demat accounts, yet NSE data reveals that only 3.34 crore Indians actively engage in trading on the exchange at least once a year.
Notably, Zerodha’s CEO, Nithin Kamath, recently shared his insights on high valuations, likening them to setting unrealistic expectations in a marriage. He cautioned against overstating opportunities, emphasizing that such practices can lead to issues and urged founders to exercise caution when raising funds at overly optimistic valuations, as it may result in unnecessary spending and growth expectations that may not align with reality.
Despite Groww’s achievement in terms of active investors, Zerodha still maintains a substantial lead in revenue, with Zerodha’s FY22-23 revenue witnessing a remarkable 38.5 percent increase to reach Rs 6,875 crore compared to the previous fiscal year. Additionally, profits also showed robust growth, reaching Rs 2,907 crore in FY23. In FY22, Zerodha recorded revenue of Rs 4,964 crore and a profit of Rs 2,094 crore.
On the other hand, in FY23, Groww reported a revenue of Rs 1,294 crore, marking a remarkable three-fold increase from the Rs 367 crore in FY22. Their net profit for FY23 showed significant growth, reaching Rs 73 crore, a substantial rise from the previous fiscal year’s Rs 6.8 crore.
