Groww Outpaces Zerodha in Active Investors Count

Fintech unicorn Groww has reportedly surpassed Zerodha, becoming the brokerage with the highest number of active users by the end of September 2023.

Active Investors Show a Shift

As per the data from the National Stock Exchange (NSE), Groww had 6.63 million active investors as compared to Zerodha’s 6.48 million. This indicates a shift in the brokerage industry in India, with more active traders choosing Groww over Zerodha. The total active traders in the country stood at 32.56 million, with Groww holding 20.35% of the market share, marginally ahead of Zerodha’s 19.9%.

Significant Growth in Profit After Tax

Nextbillion Technology, the company that operates Groww, reported a significant year-on-year rise in profit after tax. The profit after tax for the fiscal year 2022-23 (FY23) was INR 73 Cr, a 10.73X increase from INR 6.8 Cr in the previous fiscal year (FY22). This represents a substantial increase in profitability, showcasing the rapid growth of the company.

Digital Infrastructure Fuels Growth

Lalit Keshre, founder of Groww, expressed gratitude to the customers for trusting the young company. He also acknowledged the role of digital public infrastructure in facilitating the growth of the company. He emphasized that the focus would always be on providing the best experience to the customers.

High Competition in the Brokerage Industry

The Indian brokerage industry has seen a transformative wave with Zerodha and Groww leading the front. Founded in 2017, Groww enables users to invest in stocks, exchange-traded funds, and IPOs. While Zerodha is known as a pioneer in the sector, Groww has emerged as a strong competitor.

Free Account Opening and Marketing Strategies

One of the significant factors contributing to the rise in Groww’s active clients is its policy not to charge for account opening or annual maintenance. Its youth-oriented marketing campaigns have also helped attract a larger customer base. In contrast, Zerodha continues to charge an account opening fee and has a less aggressive approach towards marketing activities.

Zerodha’s Financial Performance

Zerodha reported a total income of INR 6,875 Cr during FY23, a 38% increase from the previous fiscal year. Its net profit stood at INR 2,907 Cr in FY23, up from INR 2,094.3 Cr in FY22. Despite the increase in income and profitability, Zerodha fell behind Groww in terms of active investors count.