Groww Achieves Profitability with a 266% Surge in Revenue to Rs 1,277 Crore in FY23

Groww, a broking and financial services unicorn, reported a profit after tax (PAT) of Rs 448 crore in the fiscal year ending March 2023, largely attributed to a significant increase in operating revenue, which grew by almost 266% year-on-year to reach Rs 1,277 crore. This marks a remarkable turnaround for Groww, as it reported a loss of Rs 239 crore in the previous financial year due to rising expenses. In FY23, Groww's total expenses amounted to Rs 932 crore, compared to Rs 660 crore in FY22, with total income for FY23 standing at approximately Rs 1,427 crore.

The benefits of the expenses incurred in FY22 have started to yield results in FY23, resulting in significant growth in activity and expansion into other businesses, according to industry experts closely monitoring Groww's performance.

Groww's standalone broking business posted a profit of Rs 73 crore, a significant improvement compared to the Rs 6.8 crore profit registered in the previous fiscal year. The growth in the active client base, which increased from around 40 lakh in the previous year to 60 lakh in FY23, has played a crucial role in enhancing Groww's financial metrics.

In FY23, Groww diversified its offerings, venturing into the lending business in January 2022, offering small ticket loans to select users based on their transaction history. Additionally, the company introduced UPI payments as a feature in its broking app.

Founded in 2016 by former Flipkart executives, Groww has recently secured investments and advice from Microsoft CEO Satya Nadella. The company's valuation tripled to $3 billion in 2021 across two funding rounds, with investments from ICONIQ Growth, Ribbit Capital, YC Continuity, and other investors.

In a notable achievement, Groww has surpassed Zerodha to become India's leading brokerage in terms of active investors as of September 2023. According to the National Stock Exchange (NSE), Groww had 6.63 million active investors, while Zerodha had 6.48 million by the end of September 2023. This marked a significant growth for Groww, which had approximately 0.78 million users in FY21, 3.85 million in FY22, and 5.78 million investors in FY23.

Notably, the Indian fintech sector is witnessing intense competition, with HDFC Bank and PhonePe entering the stock broking business. PhonePe recently launched its stock broking app called "Share. Market" on August 30, 2023.