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Financial services platform Groww turned profitable in the financial year ended 2023 and has reported a net profit of ₹448.7 crore in FY23 against a net loss of ₹239 crore in the previous fiscal according to company filings with the Ministry of Corporate Affairs.
Founded in 2017 by Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal, Billionbrains Garage Ventures Pvt Ltd, the parent entity of Groww, lets users invest in stocks, exchange-traded funds (ETFs), and IPOs.
The firm’s operating revenue stood at ₹1,277.8 crore in FY23 when compared with ₹351 crore in the previous fiscal , according to MCA documents. nearly ₹1,226.1 crore of its revenue came from subscriptions and commission fees in FY23.
The platform earned ₹4.8 crore from tech platform and support charges, vs ₹23.6 crore in FY22.
Groww’s expenses increased by 41 per cent to ₹932.9 crore in FY23 from ₹663.6 crore last year. In FY23, the start-up’s employee benefit expenses increased 25 per cent to ₹287 crore from ₹ 230 crore in FY22.
“Groww has been steadily driving industry growth, by democratizing financial services,” said a senior executive at Groww. “The rise in the number of active investors means more people want to take control of their finances, and prefer a platform that is in line with customer needs,” the executive added.
Groww surpassed Zerodha to become India’s leading brokerage in terms of the number of active investors as of September 2023. The executive adds, “Doing right by the customers has brought a lot of customer love for the platform, and the active investors have driven the company’s growth.”
Recently, Groww had applied for a ‘corporate agent’ licence, which allows the company to partner with only three insurance companies per category, from the Insurance Regulatory and Development Authority of India (IRDAI), reported Businessline.
This comes at a time when discount broker Groww has nudged past Zerodha to become the country’s largest broker in terms of the number of active investors.
Groww had 6.63 million active investors at the end of September 2023 as against Zerodha’s 6.48 million. The active traders in the country stood at 32.56 million at the end of September 2023. Within this, Groww’s market share stood at 20.35 per cent, closely followed by Zerodha at 19.9 per cent.
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