Groww
Groww was launched in 2016 by four ex-Flipkart employees, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, as a mutual fund platform with a mission to simplify mutual fund investments for beginner investors.
Slowly, it pivoted its way from a mutual fund investment platform to a full-fledged investment platform.
With a focus on simplicity, mobile-first design, and aggressive digital growth, it expanded into stocks, F&O, IPOs, and lending.
Zerodha
Founded by Kamath brothers Nikhil and Nithin Kamath in 2010, Zerodha has disrupted the retail investing industry by bringing a zero brokerage fees model.
Zerodha is the most profitable fintech platform in India. It remains bootstrapped, demonstrating its commitment to user trust and transparency.
Zerodha transformed the industry with their tools, like Kite and Coin, which today also set them apart from their competitors.
Industry Overview
India’s retail investing ecosystem saw active NSE clients grow from ~40.8 million in FY24 to 49.2 million in FY25, marking a 21% increase.
Discount brokers like Groww, Zerodha, Angel One, and Upstox now hold over 63% of the market share.
Check out our comprehensive deep dive into Swiggy vs. Zomato’s market competition.
Brand Analysis
Financial Snapshot & Market Position
|
Metric |
Groww |
Zerodha |
|
Market Share |
26.3% (approx.) |
16% (approx.) |
|
Active User Base |
12.92 million |
7.89 million |
|
YoY Change |
+35.5% |
+8.3% |
|
Revenue |
₹4,056 crore (YoY +31%) |
₹9372 crore (YoY +37%) |
|
Net Profit |
₹1819 crore |
₹5,496 crore |
|
Valuation and Last Funding Round |
$7 billion (Series F, June 2025) |
Bootstrapped |
|
AUM (Mutual Funds) |
₹1,940 crore (as of May 2025) |
₹6,400 crore (in ETFs over 18 months) |
|
Lending Business (FY25) |
₹965 crore loan book (as of Sept 2024) |
₹36 crore revenue, ₹12.5 crore net profit |
Brokerage & Fee Structures
When choosing a stockbroker, one of the most important things to consider is how much brokerage you'll pay. Let’s compare Zerodha and Groww, two popular discount brokers in India.
Zerodha offers ₹0 brokerage on equity delivery and charges a flat ₹20 per trade for other segments like intraday and F&O. Groww also charges ₹20 per trade, but doesn't offer free equity delivery trades like Zerodha.
|
Transaction Type |
Groww |
Zerodha |
|
Equity Delivery |
₹0 |
₹0 |
|
Intraday Trades |
₹20 or 0.05% (whichever is lower) |
₹20 or 0.03% (lower) |
|
F&O Trades |
₹20 or 0.05% |
₹20 or 0.03% |
|
Demat Annual Fee |
₹0 |
₹300/year |
|
Account Opening |
₹0 |
₹200–300 depending on segments |
|
Mutual Fund Investment Fee |
₹0 brokerage charges |
₹0 brokerage charges |
|
Commodity & Currency |
Not offered (mid-2025) |
Available |
|
Call & Trade |
Not available |
₹50/order via phone |
|
Physical Contract Note |
₹20 + Courier Charge |
₹20 |
|
Auto Square-Off Charges |
₹50 per order |
₹50 per order |
Zerodha vs Groww: Leverage (Margin)
Both Zerodha and Groww offer similar leverage for intraday trades—up to 5x (i.e., 20% margin requirement). For equity delivery and F&O segments, both require full margin.
Strategic Breakdown: Groww vs Zerodha
|
Strategic Factor |
Groww |
Zerodha |
|
Market Entry Strategy |
Entered in 2016 as a direct mutual fund platform, targeting first-time investors. |
Entered in 2010 with a banger zero-brokerage model. |
|
Pricing Strategy |
Penetration pricing with a zero-fee model and lower pricing for other investments. |
Transparent pricing; no gimmicks, focused on lowest trading cost efficiency. |
|
Tech & Infra Strategy |
Built mobile-first, cloud-native architecture and intuitive app design for simplified investing journeys. |
Developed in-house platforms (Kite, Console, Coin); APIs for advanced traders and fintech integrations. |
|
Ecosystem Play |
Moving toward a super-app model: investments, credit, tax filing, etc., in one app. |
Lean ecosystem with strong integrations: Coin, Rainmatter, and analytics tools. |
|
User Targeting Strategy |
Focused on young, new-to-market investors in Tier 2–3 cities and first-time digital users. |
Focused on active, experienced traders and HNIs seeking low-cost, high-control platforms. |
|
Monetization Model |
Mix of brokerage (F&O), commissions (MF), interest spreads (credit), and partner integrations. |
Brokerage fees, margin lending, interest income, AMC, and ecosystem investments (e.g., Smallcase, Ditto). |
|
Funding & Valuation |
VC-backed; raised $200M in 2025; current valuation at $7 billion. |
100% bootstrapped (ESOPs around $1 billion) |
|
Profitability Approach |
Focused on aggressive growth; has been profitable in recent years. |
Profitability has been their focus and has been profitable and sustainable from the early years. |
|
Brand Personality |
Youth-friendly, simplified finance for everyone, positioned as the modern financial buddy. |
Positioned as a trusted, serious, and transparent platform with high credibility. |
|
Growth & Partnerships |
Scaling via social media and integrated services like ClearTax and ICICI Credit. |
Organic growth with strategic tech investments and community engagement (Z-Connect, Varsity). |
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Final Thoughts
Groww and Zerodha have both brought significant disruption to the Indian retail investment sector, previously dominated by traditional brokers and stock companies.
Zerodha and Groww were the ones who started zero brokerage fees on equity delivery and low fees on the other trading scenarios. Groww and Zerodha represent two sides of a successful fintech strategy—rapid growth vs. operational excellence.
Numbers cannot determine the real winner; rather, it is the investor who ultimately benefits from having choices, low costs, and frictionless access.
