Groww's Astonishing Transformation, From Losses to 266 Percent Surge in Profits
Fintech Marvel, How Groww Outperformed Zerodha in Active Investors
25 October 2023
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Kunal Tyagi
Groww, a Bengaluru-based fintech startup, achieved an impressive 266% revenue surge, turning profitable in FY23 with Rs 1,277 crore in revenue, marking a substantial departure from its previous year's Rs 239 crore net loss.
The company's broking business played a pivotal role, reporting a significant profit of Rs 73 crore, compared to the previous fiscal year's Rs 6.8 crore.
Groww's rapid ascent in the Indian fintech sector is evident in its substantial user base growth, increasing from 0.78 million in FY21 to 5.78 million investors in FY23, surpassing its competitor Zerodha in the number of active investors, further solidifying its presence in the industry.
In a remarkable turn of events, Bengaluru-based fintech startup Groww has made significant strides in the fiscal year 2023, establishing its profitability. With an astounding 266 percent surge, the company registered an impressive Rs 1,277 crore in revenue, marking a clear departure from its previous fiscal year, where it reported a net loss of Rs 239 crore. This transformation highlights the dynamic nature of the Indian fintech landscape.
Groww's journey to profitability has been nothing short of inspiring. The company's operating revenue tripled to reach Rs 1,277.8 crore in FY23, according to data from the Registrar of Companies (RoC), signifying its rapid growth. Groww's broking business contributed significantly, reporting a profit of Rs 73 crore, a substantial increase from the previous fiscal year's Rs 6.8 crore in profits.
Earlier this year, Groww achieved a significant milestone by surpassing its competitor, Zerodha, in terms of the number of active investors. Figures from the National Stock Exchange (NSE) revealed that Groww had 6.63 million active investors, outstripping Zerodha's 6.48 million investors by the end of September 2023. This achievement underscores Groww's increasing popularity and influence in the Indian fintech sector.
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Groww's rapid rise can be attributed to its staggering growth in user base. The company's user count surged from approximately 0.78 million in FY21 to 3.85 million in FY22, and it further soared to 5.78 million investors in FY23. This impressive expansion occurred amidst fierce competition from rivals, including established institutions like HDFC Bank, which launched its Sky discount broking app.
In comparison, Zerodha, one of the leading discount brokerage firms in India, reported a revenue of Rs 6,875 crore and a profit of Rs 2,907 crore for FY23. While Zerodha also achieved substantial growth, with a 38.5 percent increase in revenue and a 39 percent increase in profit compared to the previous financial year, Groww's emergence as the brokerage with the highest number of active investors underscores its remarkable success.
In conclusion, Groww's journey to profitability is a testament to its resilience and ability to adapt to the ever-evolving fintech landscape. The company's rapid revenue growth and the increase in its active investor base have catapulted it into the forefront of the Indian fintech industry. As the competition intensifies, it will be fascinating to watch how Groww continues to innovate and expand its presence in this dynamic sector.
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