Groww surpasses Zerodha; becomes top brokerage firm in active investors count

Brokerage Firm: Groww overtakes Zerodhaa and becomes India's leading brokerage in terms of number of active investors.

Groww's ladder climb

According to NSE, Groww has 6.63 million active investors while Zerodha has 6.48 million at the end of September 2023. This is a substanial growth as in March 2023, Groww had only 0.78 million investors while, Zerodha possesed 3.4 million customers. While Zerodha has seen a steady growth that stagnated over the last couple of years, Groww's customer base has surged by 750%.

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The growth of Groww has also attracted formidable competitors, such as HDFC Bank, which launched the Sky discount broking app.

Groww's Popularity

The Venture-capital backed Platform gained popularity as they don’t charge customers for account opening or annual maintenance. This has also encouraged a people to open demat accounts. By the end of September, there were approximately 12.97 crore demat accounts in the country. As per NSE data, only 3.34 crore Indians actively trade at least once a year on the exchange.

Groww vs Zerodha

Even though the number of customers has grown for Groww, Zerodhaa still tops in terms of revenue. During FY23, Zerodha reported a 39% growth in revenue at Rs 6,875 crore compared with the previous financial year. It also reported an identical growth in profits, which stood at Rs 2,907 crore during the last fiscal.

Nextbillion Technology Private Limited, which runs Groww, has recorded a revenue of Rs 1,294 crore in FY23, more than three-fold growth from Rs 367 crore it reported in FY22. It reported a net profit of Rs 73 crore.

As per Moneycontrol, The sizeable difference in revenue is mostly due to Zerodha’s dominance in the Futures & Options trading which is a highly profitable segment. Meanwhile Groww focusses on attracting new customers with long-term investment products and mutual funds, especially SIP.