In a significant financial achievement, online discount broking platform Upstox announced that it has achieved profitability in the financial year 2022-23 (FY23) with a consolidated profit exceeding INR 25 Cr. The platform also reported a substantial 44% surge in broking revenue, crossing the remarkable milestone of INR 1,000 Cr in FY23. Upstox’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also surpassed the INR 200 Cr level.
Upstox CEO and co-founder, Ravi Kumar, expressed pride in the company’s journey towards profitability, stating, “Our journey towards profitability reflects our steadfast commitment to helping India ‘Invest Right.'”
The platform, founded by Shrini Viswanath, Raghu Kumar, and Ravi Kumar in 2008, has transitioned from a proprietary trading firm to a retail brokerage with the launch of the Upstox platform in 2012. With over 1.3 Cr Indian customers, Upstox is backed by prominent investors such as Ratan Tata and Tiger Global.
Unlike Zerodha, Upstox does not charge users for opening a trading account but imposes a demat account maintenance charge of INR 150. The platform generates revenue through brokerage and various other charges.
Upstox highlighted that 2023 marked a pivotal year for the company, being its third consecutive year as an official sponsor of the Indian Premier League (IPL) and ICC World Cup. These sponsorships significantly increased the brand’s visibility by 95%, according to the company.
The platform introduced several new features and tools in 2023, including a revamped Option Chain tool, an upgraded API platform, and a dedicated F&O Discover section. Upstox claimed to be the first broker to launch Tick-by-Tick powered charts in 2023. Features like Basket Orders, Order Slicing, and TradingView were also launched, further establishing the platform as a trusted finance app.
In the competitive online stock broking space in India, Upstox faces competition from Groww and Zerodha. While Zerodha posted a 39% YoY increase in net profit to INR 2,907 Cr in FY23, Groww’s parent company, Billionbrains Garage Private Limited, reported a net profit of INR 448.7 Cr in FY23, marking a significant turnaround from the net loss of INR 239 Cr in the previous fiscal year. Groww’s operating revenue also more than tripled to INR 1,277.8 Cr during FY23.
