Key Points
- Groww’s revenue hit Rs 3,145 crore, up 119% from FY23.
- The company recorded a net loss of Rs 805 crore due to a one-time tax payment.
- Moving its headquarters to India led to a Rs 1,340 crore tax cost.
- Operational profit rose to Rs 535 crore, a 17% increase.
- Groww surpassed 10 million active stock investors by May 2024.
- Zerodha leads in revenue with Rs 8,320 crore and a profit of Rs 4,700 crore.
Looma News
Groww, a major stockbroking firm, saw significant growth in the fiscal year ending March 31, 2024 (FY24). The company’s revenue skyrocketed to Rs 3,145 crore, up from Rs 1,435 crore in FY23. This increase was mainly due to income from subscription fees, commissions, and its technology platforms.
Despite this growth, Groww reported a net loss of Rs 805 crore, largely due to a one-time tax payment. Earlier in 2024, the company moved its headquarters to India, incurring a tax bill of Rs 1,340 crore. This is part of a trend of Indian startups relocating their offices to align better with local regulations and make themselves more appealing for future public offerings (IPOs).
Operational Performance
Even with the tax-related losses, Groww stayed profitable in its operations. The firm achieved an operating profit of Rs 535 crore for FY24, up from Rs 458 crore the previous year, marking a 17% growth. The core broking business contributed significantly to this success, with revenues from this area doubling to Rs 2,899 crore from Rs 1,294 crore in FY23.
Expansion and User Base
Founded in 2016 as a mutual fund platform, Groww has broadened its offerings to include stock trading, consumer lending, payments, and asset management. The launch of stock trading in 2020 helped attract a larger investor base. By May 2024, Groww surpassed 10 million active stock investors, becoming the first discount broker in India to do so. As of October 2024, the number of active investors rose to 1.2 crore.
Despite Groww’s growing user base, it still trails behind Zerodha in financial performance. For FY24, Zerodha reported revenues of Rs 8,320 crore and a net profit of Rs 4,700 crore, significantly outpacing the VC-funded Groww.
