In FY24, its overall revenue more than doubled to Rs 2,899 crore, compared to Rs 1,294 crore in 2023.
The continued growth in Groww’s client base has been supporting the scale-up in its broking volumes and earnings. Despite its foray into the margin trading facility (MTF) business, which will lead to higher dependence on borrowings, Groww’s financial leverage is expected to remain comfortable, the ICRA report noted.
In FY23, the company’s revenue rose 252% from Rs 367.4 crore in the previous year. However, expenses during that period surged almost 3.5 times to Rs 1,197 crore.
In August, Groww had around 11.5 million active clients as per the National Stock Exchange data.
As reported by ET on September 26, discount brokers like Groww are increasingly entering the MTF space as they seek to diversify revenue channels, especially with regulatory scrutiny impacting the core revenue-generating business of futures and options (F&O) trading. Groww has ventured into consumer lending as well.
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Meanwhile, its rival Zerodha posted a net profit of Rs 4,700 crore and revenue of Rs 8,320 crore for FY24, according to its CEO Nithin Kamath.In September 2023, Groww overtook Zerodha as the largest broking platform in India, with 6.63 million active investors compared to Zerodha’s 6.48 million. By May 2024, Groww’s active client base surpassed 10 million, making it the first discount broker in India to achieve this milestone.
Earlier this year, Groww relocated its domicile from the US to India, following the trend of “reverse-flipping” by Indian startups looking to benefit from the country’s maturing startup ecosystem.