India’s stockbroking sector is undergoing a dramatic transformation as Groww cements its position at the top with 13.23 million active users, according to the latest data from January 2025. The platform now controls 26.66% of the market, further widening the gap with its closest rival, Zerodha.
Despite maintaining its dominance, Groww’s month-on-month (MoM) user growth slowed, adding only 76,135 new clients in January—a modest 0.58% increase compared to December. The company, led by Lalit Keshre, is reportedly eyeing an initial public offering (IPO) within the next 10-12 months, targeting a valuation between $6 billion and $8 billion.
Zerodha’s Declining Numbers Signal a Changing Market
Zerodha, once India’s largest brokerage firm, saw a slight dip in its user base, closing January with 8.08 million active clients, down from 8.12 million in December. This decline underscores the shifting dynamics of India’s stockbroking industry, where newer players are luring customers away with aggressive incentives and better digital interfaces.
Angel One, the third-largest brokerage in the country, reported a steady 7.77 million active clients, holding a 15.65% market share. However, its MoM growth was limited to just 0.18%.
The increasing migration of users to alternative platforms is evident in the performance of companies like Upstox and ICICIdirect. Ratan Tata-backed Upstox maintained a user base of 2.86 million, while ICICIdirect grew marginally to 1.95 million users, registering a slow 0.13% growth.
Traditional Brokers Struggle as New Entrants Surge
HDFC Securities emerged as one of the few legacy brokers with notable growth, posting a 2.82% MoM increase in users. Kotak Securities, on the other hand, barely moved the needle with a 0.08% rise.
Meanwhile, newer entrants are making serious inroads:
- Dhan recorded a 3% jump, reaching 960,668 active clients.
- INDmoney surpassed that with a 3.50% MoM growth.
- Share.Market, a relatively fresh player, posted a remarkable 6.09% increase in users.
At the same time, some traditional brokers, including Sharekhan, Paytm Money, and 5paisa, experienced a decline in their user base. The shifting preference suggests investors are opting for digital-first, feature-rich platforms over conventional brokerage models.
Zerodha Still Reigns Supreme in Revenue, But Groww Closes In
While Groww leads in user count, Zerodha remains the undisputed revenue leader. The firm generated Rs 9,372 crore in revenue and Rs 5,496 crore in profits in FY24. Groww’s revenue, though significantly lower, surged to Rs 3,145 crore in the same period. Upstox, another major player, reported Rs 1,311 crore in revenue and a Rs 190 crore profit.
Groww’s bottom line took a hit due to a one-time tax payment incurred while shifting its domicile. However, with its strong growth trajectory and plans for an IPO, the firm is poised to further challenge Zerodha’s supremacy in the coming years.
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