India's stockbroking sector is undergoing significant changes, with Groww extending its leadership as the top platform with 13.23 million active users as of January 2025. This figure gives Groww a commanding 26.66% share of the market among stockbroking applications. Despite this dominance, Groww's growth rate experienced some slowdown, with the platform adding only 76,135 new users throughout January, translating to a 0.58% increase compared to the month prior, December 2024.
The data indicates significant competitive pressure within the industry as the former market leader, Zerodha, experiences its second consecutive month of user decline. By the end of January, Zerodha's active user count fell to 8.08 million, down from 8.12 million at the end of December. This development is likely attributed to user migration to other platforms, which tend to provide enhanced features and incentives.
Angel One, the third-largest player, maintained its user base at strong levels, recording 7.77 million active clients and holding 15.65% of the market share. Despite this, its month-on-month growth was modest at only 0.18%. Other brokers, such as Upstox and ICICIdirect, have also shown mixed results. Upstox, backed by Ratan Tata, reported 2.86 million active users, whereas ICICIdirect reached 1.95 million clients but displayed minimal growth at 0.13%.
Among the more traditional brokerage houses, HDFC Securities reported notable success, showing 2.82% monthly growth, contrasted sharply with Kotak Securities' slight increase of 0.08%. Emerging player Dhan, fascinatingly, achieved one of the strongest growth rates, with its user base swelling by 3% to reach 960,668 active clients. INDmoney also made strides, posting impressive 3.50% month-on-month growth.
The changing retention dynamics are underscored by the fact some historical players, including Sharekhan and Paytm Money, reported user declines. Conversely, newer entrants like Share.Market have surged—a growth rate of 6.09% illustrating shifts within investor preferences.
Financial performance reveals Zerodha as the largest revenue player within the midst of these competitive developments, boasting revenues of Rs 9,372 crore and profits of Rs 5,496 crore for the fiscal year 2024. Comparatively, Groww experienced revenue growth surging to Rs 3,145 crore, albeit incurring losses connected to a one-time tax payment for domicile changes. Upstox reported revenues of Rs 1,311 crore alongside profits of Rs 190 crore.
Looking forward, according to industry reports, Groww is preparing for its public listing within 10-12 months, alongside aspirations for valuations stretching between $6 billion to $8 billion. This timeframe captures the anticipation building around the growing online brokerage scene amid the rapidly shifting preferences of Indian investors.
Overall, the Indian stockbroking industry is experiencing distinctive shifts, characterized by both competitive pressures and the emergence of newer players. Each broker's fate reflects broader investor trends as the market matures, leading to both challenges and opportunities for all involved.