Groww’s Remarkable FY23 Journey: From Losses to Profit, Beating Rivals!

Discover how Groww turned profitable in FY23 with a 266% revenue jump, surpassing rivals like Zerodha. Learn their incredible success story.

In an incredible financial feat, Groww, the Bengaluru-based fintech marvel, painted FY23 with the colors of profitability. This unicorn, touted as a Zerodha rival, has been busy diversifying its offerings, including venturing into lending and embracing UPI payments within its app.

As the curtains drew on March 2023, their balance sheet was an eye-popper. The company reported a PAT (Profit After Tax) of Rs 448 crore, thanks to a staggering 266% surge in its operating revenue, soaring to Rs 1,277 crore from the previous year. That’s a performance that deserves a standing ovation!

But let’s not forget, every superhero has its kryptonite. In the last financial year, they had to weather a loss of Rs 239 crore due to the escalating expenses. FY23 saw an expenditure of Rs 932 crore, compared to Rs 660 crore in FY22. Yet, it seems the investments made in the previous year started yielding fruits in FY23, igniting a remarkable surge in activities and growth across various sectors.

The broking business, standing tall and independent, reported a profit of Rs 73 crore, showcasing tremendous progress from Rs 6.8 crore in the previous fiscal year. This astounding performance was driven by the growing base of active clients, which soared from 40 lakh to 60 lakh. Impressive, right?

But there’s more to the story. In FY23, Groww expanded its horizons, stepping into the lending business, offering loans up to Rs 10 lakhs based on credit scores. They also added UPI payments to their broking app, keeping pace with the dynamic fintech landscape.

This financial crusader, founded by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal in 2016, recently received a boost from none other than Microsoft CEO Satya Nadella, who joined as an investor and advisor. Plus, their valuation tripled to a whopping $3 billion in 2021, making them a unicorn, and they achieved this milestone with the backing of investors like ICONIQ Growth, Ribbit Capital, and YC Continuity.

Even more impressive is the fact that they’ve outshone their rival, Zerodha, in terms of active investors as of September 2023. According to the NSE, Groww boasts a solid 6.63 million active investors, outperforming Zerodha’s 6.48 million. Remember, in March 2021, Zerodha had 3.4 million customers, and Groww had just 0.78 million. Talk about a meteoric rise!

However, when it comes to revenue, Zerodha still leads the way, with its revenue being over five times that of Groww.

To add to their impressive journey, HDFC Bank, a formidable competitor, launched the Sky discount broking app. Moreover, PhonePe is the latest entrant to the stock broking arena, unveiling its “Share. Market” app on August 30.

What a financial adventure Groww’s been on! Stay tuned for more incredible leaps and bounds in the fintech world. #Groww #FintechGiants #ProfitJourney