Stockbroking firm Groww paid ₹1,340 cr as a one-time tax to move its domicile from the U.S. to India which led to the company incurring a loss of ₹805 crore in financial year 2023-24.
Groww reported revenues of ₹3,145 crore for FY24 (fiscal year ending March 31, 2024), 119% growth from FY23 revenue of ₹1,435 crore. The discount brokerage says it maintained its operational profitability of ₹535 crore for FY24 compared with ₹458 crore for FY23.
The Bengaluru-based company began in 2016 as a mutual funds investing platform and steadily expanded its offerings by introducing stocks in 2020. Last year, Groww ventured into consumer lending, payments, and asset management through subsidiary businesses.
Groww became the first stock broker in the country to cross 1 crore active investors earlier this calendar year. As of October 2024, Groww’s active stock investor base stood at 1.2 crore. Nearly one in four new SIPs in the country happens via Groww, making it India’s largest Mutual Funds investing platform.
The company achieved strong growth in July-September quarter 2024, adding over 4.7 million new SIPs. Out of 6.6 million new SIPs recorded in September by AMFI, Groww added 1.6 million new SIPs, strengthening its market leadership.
This growth was driven by younger investors, with over 50% of contributors under the age of 35, demonstrating a strong inclination towards early and disciplined financial planning. Additionally, female participation stood at 24%, exceeding the national average reported by AMFI, signalling a positive shift in financial engagement among women. Groww has seen a significant increase in the number of new SIPs, with 2x growth this quarter compared to last year, which is 50% of total Industry SIPs seen in the same period last year.
SIPs comprised 86% of the Mutual Funds investment volume on the platform, while lumpsum investments accounted for 14%. The average SIP value per customer rose to over INR 6,000, highlighting the growing commitment to long-term investing through SIPs.
“The rising participation of younger and female investors reflects financialisation of savings across India, as more people embrace the benefits of systematic, long-term investment. We have seen a large scale adoption of UPI autopay which has simplified the payment experience for investors. Additionally, our flagship educational initiative - Ab India Karega Groww has evangelised disciplined investing among investors all over the country,” says Harsh Jain, co-founder and COO, Groww.
Notably, nearly 80% of the transactions on the platform came from non-metro cities, indicating rising interest in systematic investment plans (SIPs) among retail investors from smaller towns and cities. Regionally, the top five states contributing the highest number of SIPs from B30 (beyond the top 30) cities were Maharashtra, Uttar Pradesh, West Bengal, Bihar, and Rajasthan. The strong participation from these states reflects the growing interest in equity assets among individuals in non-metro regions. Investors are embracing wealth-building strategies that prioritise consistent, thoughtful financial planning and strategic asset allocation for financial growth.
