However, along with revenues, its expenses shot up too. In the last financial year, Groww reported total expenses of Rs 1,197 crore, up 235% from Rs 357 crore a year earlier. This resulted in its profit rising to Rs 73 crore from a meagre Rs 6.8 crore a year earlier.
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News website The Arc was the first to report Groww’s financials.
According to credit rating agency ICRA, a rapid rise in Groww’s client base helped the startup increase its business volumes, and in turn push up revenue.
According to data shared by the NSE, Groww has around 63 lakh active clients as of end-August. ET wrote on September 25, that Groww could upend Zerodha in terms of active users in September. The official numbers will be released sometime next week.
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Groww is also entering into the margin trading business. Margin trading allows customers to buy stock worth more than they can pay upfront. The broker loans the trader the money and charges interest on it.
“NBT is preparing to foray into the MTF business that will lead to higher borrowings, though the financial leverage is expected to remain comfortable,” ICRA said in the note issued on July 13.
Recently, HDFC Securities launched Sky to compete with Zerodha and Groww. Sky offers margin trading business to its users.
While Groww got 90% of its overall revenue from retail broking, the company has diversified into credit and payments already. It offers Unified Payments Interface-based digital payments on the app. It has also opened up personal loans and other credit services to its customers, hoping to generate healthy margins from the credit business.
Last week, Groww’s closest rival Zerodha announced its fiscal 2023 financials. The Bengaluru-based fintech major reported overall revenue of Rs 6,875 crore and a net profit of Rs 2,900 crore.
Angel One, a listed stock broker which is the third largest player in terms of active clients, reported Rs 831 crore in total revenue in fiscal 2023, up 21.6% from Rs 683 crore a year earlier. Its net profit for last year stood at Rs 267 crore.
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