Fintech platform Groww‘s investor base has doubled from 5.65 million in June last year to almost 11 million users in June 2024, according to the National Stock Exchange reports.
While Bengaluru-based Groww gained around 5.5 lakh users in June, Angel One gained 2.2 lakh users and Zerodha also added 1.5 lakh active users.
Despite SEBI’s regulations on market infrastructure institutions (MIIs) that restricted them from providing trading volume-based discounts which impacted 30-40% of their topline, a surge has been noted in the numbers of fresh demat accounts with the total reaching 160 million of which 4.2 million came in June. The overall active investor count exceeds 40 million.
In September 2023, Groww dethroned Zerodha from the highest active investor base marking 6.63 million active investors while the latter had 6.48 million active investors. NSE reports also suggest that Angel One could soon overtake Zerodha in active investor count. Though discount brokers dominate over the traditional full-service brokers backed by banks, SBI-backed SBICAP’s active investor base also surged by 64% from 5.6 lakh in June last year to 9.2 lakh in June 2024.
F & O traders that make up 10-20% of the active client base, account for 60-80% of the revenue for discount brokers. SEBI’s regulation to levy a true-to-label fee on customers impacted 20% of the discount broker’s revenue. SEBI is planning to reduce F & O trading on Indian exchanges, with only one weekly options contract per exchange and minimum lot size of Rs 20-30 lakh which could potentially impact further 20% of their revenue.
