Zerodha, Groww together control almost 40% market share of stock broking industry

Two Bengaluru-based startups – Groww and Zerodha – together command a market share of 39.3% in India’s stock broking industry which is dominated by discount broking firms.

The latest data from NSE shows that Groww, backed by the likes of Sequoia Capital and Tiger Global, is now the largest player in the industry if one takes into account the number of active clients on the stock exchange. At the end of September, Zerodha’s market share remained the same month-on-month at 19.4% while those of Groww rose to 19.9%.

In terms of NSE active clients, Zerodha had a 6.5 million user base, a notch lower than that of Groww’s 6.6 million.

Angel One, which is the third biggest player, also saw an increase in market share to 14.6% last month while that of Upstox remained flat at 6.6%.

Currently, the top five discount brokers account for 61.9% of total NSE active clients.

Among traditional broking firms, ICICI Securities reported a 2.1% month-on-month (MoM) decline in its client count to 1.9 million, with a ~20bp decline in market share to 5.7%. IIFL Securities reported a 1.7% MoM decline in its client count to 0.4m, with a marginal decline in market share to 1.3%.

During the month, the number of active users on NSE increased for the third consecutive month to 33.4 million from 32.7 million in August.”The total number of demat accounts increased to 130m in Sep ’23. The number of new account additions remained stable MoM at 3.1m in Sep’23, maintaining an average of 2.1m monthly additions in FY23,” Motilal Oswal said.

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The overall average daily turnover or ADTO volume surged 9% MoM to Rs 335 trillion, well supported by F&O ADTO (up 9% MoM) and continued traction in cash ADTO (up 8% MoM). Overall retail ADTO jumped 11% MoM to Rs 120 trillion with retail F&O ADTO increasing by 11% MoM and retail cash ADTO growing 9% MoM to Rs 357 billion.

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