Bengaluru-based fintech startup, Groww, has overtaken Zerodha to become the top brokerage firm in India based on the number of active investors. The latest quarterly data by National Stock Exchange shows that Groww has a record 6.63 million active investors, surpassing Zerodha's 6.48 million, as of September 2023. 

In March 2021, Zerodha had 3.4 million customers, whereas Groww had 0.78 million. Since then, Zerodha's user base has doubled at a consistent rate, even showing signs of stagnation over the past couple of years. In contrast, Groww has seen its customer base surge by 750 percent. 

This shift in the industry landscape represents a significant transformation from March 2021 when Zerodha had 3.4 million customers compared to Groww's 0.78 million. While Zerodha's user base has steadily grown since then, it hasn't experienced the remarkable growth that Groww has achieved, with a 750 percent increase in its customer base. 

By the end of the fiscal year 2023, Zerodha had grown to 6.39 million customers, while Groww had 5.37 million. Groww has experienced substantial growth, increasing from around 0.78 million users in FY21 to 3.85 million in FY22 and 5.78 million investors in FY23. This growth has also attracted formidable competitors, such as HDFC Bank, which launched the Sky discount broking app. 

While Groww has overtaken Zerodha in terms of active investors, Zerodha's revenue remains more than five times that of Groww. In FY23, Zerodha reported a 39 percent growth in revenue, reaching Rs 6,875 crore compared to the previous financial year. It also reported an identical growth in profits, which amounted to Rs 2,907 crore during the last fiscal year. 

Meanwhile, Nextbillion Technology Private Limited, the company behind Groww, reported a revenue of Rs 1,294 crore in FY23, reflecting a more than three-fold growth from the Rs 367 crore it reported in FY22. It also reported a net profit of Rs 73 crore.