Groww Essentials

ISIN

INE0HQR01015

Face Value

₹1.00

Total Share

66,25,465

Total Income

₹368.80 Cr

Profit After Tax

₹6.81 Cr

EPS

₹15.37

P/E

49.45

P/B

1.30

Market Capitalisation

₹503.54 Cr

Enterprise Value

₹418.90 Cr

Book Value

₹585.94

Intrinsic Value

₹36,187.85

Earnings Yield

2.02 %

Sector

Financials

Sub-sector

Stock Broking

Category

Unicorn

Cashflow - Operations

-₹245.80 Cr

Cashflow - Financing

₹249.88 Cr

Groww Growth

Compounded Sales Growth

  • 783.56%

    1 Year

  • 1547.23%

    3 Year

  • 1006.78%

    5 Year

Pro Only

Compounded Profit Growth

  • 160.92%

    1 Year

  • 207.10%

    3 Year

  • 112.15%

    5 Year

Pro Only

Return On Equity

  • 1.75%

    2022

  • -144.04%

    2020

  • -83.96%

    2018

Pro Only

About Groww

  • Nextbillion Technology Private Limited (Groww) is a registered Stock Broker and Depository participant under the Securities and Exchange Board of India (SEBI), primarily engaged in the business of Stock broking services including mutual fund and Depository services. 
  • Nextbillion Technology Private Limited is a subsidiary of BillionBrains Garage Ventures Private Limited. BillionBrains Garage Ventures Private Limited is a subsidiary of Groww, Inc. which is registered in the US and is funded by marquee private equity players like Sequoia India, Tiger Global, and Ribbit Capital
  • Groww, Inc. invests the fund in BillionBrains Garage Ventures Private Limited which in turn further invests the money in Nextbillion Technology Private Limited   
  • In 2017, Groww started as a direct mutual fund distribution platform and within a year became one of the most popular mutual fund investment platforms in the country. 
  • Groww added stocks in the early half of 2020 and the same year launched digital gold, ETFs, Intraday trading, IPO, and in quick succession.
  • Today, more than 1.5 Cr users across 900+ cities across India trust Groww for their investment needs. 
  • The company was incorporated as a private limited company on 4th May 2016 under the provisions of the Companies Act, 2013, and is registered in Bangalore, Karnataka. 

  • Groww IPO Details

  • The company does not have any plan to bring its IPO as of now

  • Groww Funding

Funded By Funding Amount Date of Investment Funding Round
Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global, Propel Venture Partners, Alkeon ₹ 1874.60 Cr 21 Oct 2021 E
Tiger Global Management, Sequoia Capital India, Ribbit Capital, YC Continuity and Propel ₹ 580.45 Cr 24 Mar 2021 D
YC Continuity, Sequoia India, Ribbit Capital and Propel Ventures ₹ 183.65 Cr 16 Sep 2020 C
Ribbit Capital, Sequoia India and Y Combinator ₹ 138.94 Cr 23 Sep 2019 B
Sequoia India, Y Combinator, Propel Venture Partners, and Kauffman Fellows ₹ 2.99 Cr 10 Aug 2018 A
  • Groww Merger & Acquisition

Acquisition

  • The Company has acquired the Mutual Fund Business of Indiabulls Asset Management Company Limited (IAMCL), by way of the acquisition of a 100.0% equity stake in IAMCL and Indiabulls Trustee Company Limited (ITCL), on May 10, 2021, at an aggregate purchase consideration of Rs 175.0 Crores (Cr.).
  • Groww acquired Finozen application which allows investors to invest in ultra-short-term debt and liquid fund   
  • Groww Subsidiaries

  • Billionblocks Finserv Private Limited
  • Neobillion Fintech Private Limited
  • Groww Pay Service Private Limited
  • Finvantage Investment Adviser Private Limited
  • Groww Creditserv Technology Private Limited

Groww Business Model

  • Billionblocks Finserv Private Limited is involved in Activities auxiliary to financial intermediation, except insurance and pension funding. 
  • Groww Pay Service operates the company's payment gateway which provides services in digital monetary transactions
  • Finvantage Investment Adviser Private Limited provides services related to investment advisory services
  • Groww Revenue Segmentation

  • Fees and Commission
  • Interest Income
  • Other
  • Groww Product & Services

Through its mobile application, Groww provides the following services:-

  • Stocks:- Through the Groww App one can buy and sell stocks in Indian and US market
  • Mutual Funds:- Groww app provides the platform to explore and invest in the mutual funds
  • Digital Gold:- Investments in Gold ETF can be made through Groww App  
  • Groww Assets


Assets (FY22)Value (Rs Cr.)
Cash & Cash Equivalents84.64
Long Term Investments39.92
Other Financial Assets1658.27


  • Groww Industry Overview

Industry Statistics

Definition:

  • A brokerage house also known as a broker is an institution, an intermediary, that facilitates your transactions when dealing with securities - like stocks, mutual funds, ETFs, and others
  • Brokerage firms help you with your transactions, give you investment guides, tax-saving recommendations, and retirement planning advice, and deliver asset management services. They will guide you through all the requirements for investing in the stock market. 
  • As per SEBI guidelines, all trades on stock exchanges must be routed through a Member of the Exchange - a brokerage house.
  • Primarily brokers are of two types-traditional or full-service brokers, and discount brokers.


Traditional Brokers:-

  • A traditional broker provides a large variety of services to its clients - such as trading (stocks, commodities, and currency), advisory, research, asset management, and retirement planning.
  • A traditional broker usually allows the trading of different financial instruments - forex, mutual funds, pension plans, insurances, bonds, IPOs, and FDs. Traditional brokers come with a high operating rate, due to these extra facilities.
  • Examples: - ICICI Securities, HDFC Securities, Sharekan, and Motilal Oswal Financial Service


Discount Brokers: -

  • Discount brokers are those brokerage firms that charge a reduced fee/commission for helping investors purchase and sell on the stock markets. Such discount brokers utilize the best technology to provide a sophisticated trading experience.

  • Example: - Zerodha, Upstox and Groww


Difference between Traditional Broker & Discount Broker

Traditional BrokerDiscount Broker
Research: Traditional brokers will deliver detailed research on stocks and market outlook
Powerful Analysis Tools: Discount brokerages offer more than 100 charts and other tools to smartly analyze your stocks and trade intelligently and independently
Recommendations: All sorts of recommendations including investment and diversification ideas, retirement plans, and tax-saving guides come from traditional brokers
Time and efficiency: Discount brokers offer an efficient and time-saving approach to trading. Time is everything in the markets. With innovative and fast platforms, you can place and execute orders instantly
Additional Services: Traditional brokers claim to provide extra services such as commodities, currency trading, advisory, research, asset management, and more
Better Tech: Discount brokers are more likely to be in sync with new technologies - such as paperless account opening processes that eliminate paperwork and reduce costs
Brokerage Charges are high

Brokerage Charges are low


Market Size:-  
  • The industry clocked a total revenue of Rs. 27,000-28,000 Cr in FY22 over Rs 24,860 Cr in FY21 clocking a growth of 10.5%. This growth is mainly attributed to the first-time investors investing in the market along with the record number of new IPOs hitting the market 
  • The revenue of the industry is expected to grow to Rs 380-400 bn by 2025 registering a growth of 11.0%-12.0%


Competitive Landscape:-

  • Market Share of Different Players
BrokerActive Clients (In Lakh)Market Share (%)
Zerodha66.3
18.1
Groww49.713.6
Upstox44.212.1
Angel One42.111.5
ICICI Sec29.07.9
5Paisa Capital13.43.7
  • Client Acquisition Cost vs Revenue Per Client

Key Drivers:-

  • Rise in the number of smartphone users vs Featured Phone. Smartphone penetration is further expected to increase to 68.0% vs 32.0% by FY26.



  • Low Brokerage Charges:- Discount brokers charge an abysmally low fee on a per-order basis. Intra-day trades: RS 10-20/order or 0.01% of trade value and zero delivery charges.
  • User-Friendly Interface:- The initial page after logging in on Kite-Zerodha displays only the bare minimum information for a new investor to trade, but on platforms such as Motilal Oswal and ICICI Securities, there appears to be a significant amount of global and macro data, which makes navigating a little difficult for first-time investors. The average technology cost for discount brokers is Rs 63.8 Cr  
  • Favorable Demography:- India has the largest working-age population with millennials (those born between 1980 and 1996) accounting for 36.0% of the population and projected to be 50.0% of its workforce by 2025. 
  • Hassle-Free Account Opening:- Account opening and KYC process take place online at a click of a button, saving a lot of time.


Key Trends:-

  • Systemic under-penetration: - Low returns from traditional investment instruments such as gold and real estate, have led to a shift in retail investor interest in the capital markets.
  • Rising Smartphone Penetration to increase Do it Yourself (DIY) Trading:-

  • Rising financial savings and digitalization remain long-term growth levers: - The gradual pickup in economic growth, benign inflation, and low-interest rates are expected to increase household financial savings in India.
  • Strong Indian Economy Growth:- Morgan Stanley predicts $6.5-trillion boom in India’s stock market by 2030.
  • Penetration Level:- Penetration levels of a number of people investing in the stock market remains extremely low vis-à-vis the US and China. While investing in stock markets has become more popular in India in recent times, overall penetration remains low – only 55 million (mn) Indian invest in the stock markets, which is around 4.0% of the country’s population. In comparison, over 50.0% of Americans own stocks. Even in neighboring China, the percentage of the population that invests in the stock markets is 7.0%. India’s figure of 4.0% indicates plenty of headroom for India’s stock market penetration to grow. 

Future Prospects

  • Discount brokers- Pure broking revenues headed for a 2.8x jump by FY25 


  • Broking revenue market share (RMS) across broker categories 





Government Initiatives

  • Launch of a dedicated Mobile App on investor education SEBI launched Saarthi -SEBI's Mobile App on Investor Education, to promote investor education.
  • SEBI also participated in various District Book Fairs (in association with Mils) and other Government initiatives during 2021-22 to promote investor awareness and investor education.
  • SEBI conducts the 'Visit to SEBI' programs for students from colleges and professional institutes, wherein the participants are briefed about the introduction to the securities market and the role of SEBI.

Groww Awards & Achievements

  • Groww Wins BSE Award for Performance 2022
  • Top volume performer in BSE STAR MF Fintech Highest Transactions 2017-18

Groww Strengths

  • Company is cash-rich (Cash of Rs 84.64 Cr as of FY22) and is a profitable organization (Profit of Rs 9.30 Cr as of FY22)  
  • Groww has a strong recall value
  • Company is backed by large investors like Ribbit Capital, Sequoia, Tiger Global, and Satya Nadella (CEO of Microsoft)
  • Company started its stock services in the first half of 2020 and has shown decent growth thereafter, mainly due to heavy expenditure on its advertisement and marketing
  • Company is debt-free 

Groww Shortcomings

  • Company is mainly catering to small ticket sizes investors who invest and trade as per market sentiment
  • Discount Broking Model does not give much comfort to big investors and therefore they do not get on onboard. The average revenue per client for the top 5 discount brokers is Rs 1982.7 vs the average revenue per client for institutional brokers of Rs 17406.7  
  • Revenues are more concentrated toward brokerage and commission fees which makes the business a cyclical one  

Groww Opportunities

  • Cross-selling of products like insurance, research reports, advisory and financial literacy products
  • Revenue of Discount Brokers is dependent on trading volumes and therefore discount brokers have the opportunity to onboard big investors and institutions as well 

Groww Threats

  • Industry is oligopoly i.e. a large number of players are present in the discount broking segment
  • Competition in the industry is by decreasing prices of the product which further reduces margins of the companies 
  • Discount Brokers depend on their user-friendly technology for their growth, which is easy to replicate
  • In order to attract the millennials, traditional brokers are also offering discount broking. Recently HDFC Securities announced their product for the discount broking segment
Groww Rating

  • RECOMMENDATION

    Neutral

  • Groww Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

14/12/2022

Registered Date

04/05/2016

Planify Ticker

Groww

Reg Office: No.11, 80ft Road, 4th Block, S.T Bed, Koramangala, Bangalore - 560034, Karnataka

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