Groww Dethrones Zerodha As India's Largest Brokerage

Bengaluru’s fintech startup, Groww, has outpaced Zerodha, claiming the throne as India’s top brokerage house by active investors.

What Happened? As per NSE’s recent data, Groww boasts a whopping 6.63 million active investors as of September, nudging ahead of Zerodha’s 6.48 million.

Let’s rewind a bit: back in March 2021, Zerodha led the pack with 3.4 million customers, while Groww trailed with a mere 0.78 million. Fast forward, and we see Groww’s meteoric 750% rise, dwarfing Zerodha’s steady climb.

But what’s the secret sauce behind Groww’s success? It seems the allure of fee-free account offerings from VC-backed platforms like Groww and Upstox is irresistible. Not to mention, heavyweights like PhonePe are diving into the investment pool with platforms like Share.Market.

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However, Zerodha’s CEO, Nithin Kamath, recently waved a cautionary flag on sky-high valuations, likening them to overblown marital expectations. He emphasized the pitfalls of overhyping opportunities, hinting at the potential disconnect between growth expectations and ground reality.

On the financial front, while Zerodha’s revenue soared by 38.5% to ₹6,875 crore in FY22-23, Groww reported a revenue of ₹1,294 crore in FY23, a commendable leap from its ₹367 crore in FY22. Yet, it’s clear: in the race for dominance, it’s not just about numbers but strategy and adaptability.

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