Groww, the prominent investment platform, has experienced significant growth, outpacing its competitors in market share expansion and investor acquisition. According to recent data from the National Stock Exchange (NSE), Groww’s active investor base surged to 9.5 million in March 2024, marking a remarkable 77.5 percent increase compared to the previous year. This surge propelled Groww’s market share to 23.4 percent, up from 16.5 percent in the preceding year.
Market Share Dynamics Among Competitors
While Groww has seen substantial growth, several peer stockbrokers, including Zerodha and HDFC Securities, have faced challenges in maintaining their market share. Despite witnessing an expansion in their customer base, Zerodha and HDFC Securities experienced a decline in market share. Similarly, Upstox and ICICI Securities reported a reduction in users, reflecting the competitive landscape’s volatility.
Angel One’s Market Share Expansion
Notably, Angel One also witnessed a rise in its market share, reaching 15 percent, with an active investor base of 6.11 million at the end of the fiscal year 2023-24, reflecting a growth of 42 percent year-on-year.
Rise of Investors from Small Cities and Towns
The surge in active investors on the NSE, reaching 40.8 million by the end of FY24, has been fueled largely by investors from smaller cities and towns. These investors are increasingly turning to discount brokers, attracted by their cost-effectiveness and user-friendly mobile applications.
Impact on Brokerages
Growth and Market Share Dynamics
While some brokerages experienced growth in their customer base, others witnessed a decline in market share, with Groww and Angel One emerging as key beneficiaries in the financial year 2023-24. Brokerages such as Zerodha, Motilal Oswal, HDFC Securities, SBICap Securities, and Axis Securities encountered challenges in retaining their market share amidst intense competition.
Market Share Erosion
Conversely, brokerages like Upstox, 5Paisa Capital, ICICI Securities, Sharekhan, and IIFL Securities faced erosion in their customer base, with ICICI Securities and Upstox being the most impacted, each losing over 260 basis points of market share. Notably, Groww’s customer base now surpasses that of ICICI Securities by more than five times, signaling a significant shift in market dynamics.
Groww’s Trajectory of Growth
In September 2023, Groww surpassed Zerodha to become the largest stockbroking platform. While Zerodha boasts a higher revenue compared to Groww, the latter has witnessed remarkable growth in both revenue and net income. In FY23, Groww’s revenue surged to Rs 1,294 crore, marking a three-fold increase from the previous fiscal year. This growth trajectory underscores Groww’s strategic focus on expanding its offerings to cater to a broader investor base, including daily traders and Futures & Options (F&O) investors, while maintaining its stronghold in long-term investment products and mutual funds. As Groww continues to evolve its platform, it aims to capture a larger share of the market, leveraging its innovative approach and customer-centric strategies.
