SUMMARY
- GIT saw its revenue from operations climb to Rs 2,900 crore in FY24, from Rs 1,295 crore in FY23.
- Its profits surged to Rs 298 crore in FY24 from Rs 73 crore in FY23.
- It has recently surpassed Zerodha to become the leading stockbroking application in the country.
Stockbroking division of Groww, Groww Invest-Tech Private Limited, has achieved a 2.4 times increase in its revenue from operations over FY24. The Tiger Global-backed firm experienced a profit increase of over four times during the same time period.
Based on its audited financial statements, reviewed by credit rating agency ICRA, Groww Invest-Tech saw its revenue from operations climb to Rs 2,900 crore in FY24, from Rs 1,295 crore in FY23. Approximately 90% of the revenue came from retail broking activities.
Groww-owned GIT is a subsidiary of Billionbrains Garage Ventures, which operates the group’s technology platform. The firm offers equity broking services in both the cash and derivatives markets, in addition to distributing mutual funds.
As of August 2024, the platform has secured a 25% market share in India and has over 1.2 million active users, as reported by NSE data. It has recently surpassed Zerodha to become the leading stockbroking application in the country, with AngelOne, Upstox, and ICICI Securities following closely behind.
Groww Invest-Tech has also ventured into the Margin Trading Facility (MTF) sector, which is expected to increase its borrowings through a mix of its own capital and commercial paper, as noted by ICRA. However, the firm is expected to maintain its financial leverage at a manageable level.
The rise in brokerage activities has been a key factor in Groww’s quadrupled profit growth, with profits surging to Rs 298 crore in FY24 from Rs 73 crore in FY23. This growth has also led to an improvement in the firm’s return on average net worth reaching 40.3%.
In May, Groww transitioned its headquarters back to India from the US, as stated by the company’s CEO Lalit Keshre.
Zerodha reported revenue of Rs 8,370 crore and profits of Rs 4,700 crore for fiscal year 2024. Kamath mentioned in a recent blog post, “Over the last three years, our profitability has resulted in our net worth being approximately 40% of the customer funds that we manage.”
