Athira Sethu
Kochi, 3 October 2024
Indian biggest broking platform in terms of active investors, Groww, has recorded strong growth in FY24.
According to ICRA, the company backed by Tiger Global, registered a net profit of Rs 297 crore during FY24, a 300% increase from Rs 73 crore reported in FY23. Its revenue increased from Rs 1,294 crore in FY23 to Rs 2,900 crore in FY24.
Recently, Groww ventured into margin trading, wherein the clients can borrow money for trade. Again, this means that the dependence on loans is going to increase for the company. According to ICRA, however, the financials should remain within the company’s control. Groww reported around 1.2 crore active clients at the end of August, according to the available data from the National Stock Exchange.
Discount brokers like Groww now eye margin trading as a source of income, especially as the greater pain now falls on their core business of futures and options trading due to increased regulations. Groww has started consumer loans as a way to diversify revenue streams.
Its closest competitor, Zerodha, reported a net profit of Rs 4,700 crore and revenue of Rs 8,320 crore during FY24, its CEO Nithin Kamath has said. In September 2023, Groww overtook Zerodha to be the largest broking platform in India, with 6.63 million active investors on the platform compared with Zerodha’s 6.48 million. By May 2024, Groww had crossed the mark of 10 million active clients, and this milestone made Groww the first discount broker in India to record such a feat.
Earlier this year, Groww had shifted its headquarters from the US to India, known as “reverse-flip” in startup parlance.
