Groww, a leading fintech giant, has reached a significant milestone with over 10 million active investors on its trading platform as of May 2024. According to data from the National Stock Exchange (NSE), Groww’s closest competitor, Zerodha, holds the second position with 7.5 million active investors.
Rapid Growth and Market Dominance
In May alone, Groww witnessed a substantial increase of approximately 433,000 investors, while Zerodha onboarded around 114,000 users. With this surge, Groww’s market share is estimated to have exceeded 27%, solidifying its position as a frontrunner in the fintech industry.
Operated by Nextbillion Technology Private Limited, Groww initially began as an investment tech platform and has since expanded its offerings to include payments and lending services. The platform is now eyeing the insurance sector, further diversifying its product suite.
Competitive Landscape
While Groww has overtaken Zerodha in terms of active investors since mid-2023, Zerodha continues to outperform in revenue generation. Notably, investors can open accounts for free on Groww, unlike Zerodha, where account opening comes with a fee, a factor that contributes to its revenue stream.
In the financial year 2022-23, Zerodha reported a 37% increase in net profit, reaching INR 2,908.9 crore, and a corresponding growth in operating revenue to INR 6,832.8 crore. Meanwhile, Groww achieved profitability for the first time in FY23, with a net profit of INR 448.7 crore, attributed to a tripled revenue from operations.
Regulatory Approvals and Business Expansions
In recent developments, Groww received approval from the Reserve Bank of India (RBI) to operate its bill payments platform, Groww Pay Services, as a payment aggregator (PA). Additionally, it obtained an in-principle authorization from RBI for its PA business.
Moreover, Groww secured approval from the Securities and Exchange Board of India (SEBI) to launch India’s first Nifty non-cyclical consumer index fund, which went live in May as a new fund offering (NFO). Furthermore, the company completed its reverse flip, relocating its domicile to India from the United States, signifying its commitment to the Indian market.
