Stockbroking company Groww achieved notable growth during the fiscal year ending March 31, 2024 (FY24), with its revenue climbing to ₹3,145 crore, reflecting a 119% rise from ₹1,435 crore in FY23. The surge was mainly driven by income generated through subscription fees, commissions, and revenue from its technological platforms and support services.
Despite the substantial increase in revenue, Groww posted a net loss of ₹805 crore, primarily due to a one-time tax expense. Earlier in the year, Groww’s relocation of its headquarters to India led to a hefty one-time tax payment of ₹1,340 crore, significantly impacting its net profits. This tax cost aligns with a broader trend known as “reverse-flipping,” where Indian startups relocate their base to India. Such a shift helps companies comply with India’s evolving regulatory environment and positions them more favorably for potential public offerings (IPOs). However, this move can incur high costs, as evidenced by other fintech firms like PhonePe and Razorpay, which faced similar tax liabilities when relocating.
Originally launched in 2016 as a mutual fund investment platform, Groww has since diversified into various financial services, including stock trading, consumer lending, payments, and asset management. The company ventured into stock trading in 2020 and has continued to broaden its service offerings, allowing it to attract a larger user base.
By May 2024, Groww surpassed 10 million active stock investors, becoming the first discount broker in India to reach this milestone. As of October 2024, the company reported having 1.2 crore active investors.
While Groww has grown significantly in terms of user base, Zerodha remains the leader in financial performance. For FY24, Zerodha reported ₹8,320 crore in revenue and a net profit of ₹4,700 crore, significantly outpacing the VC-backed Groww.
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