Groww taking over Zerodha in terms of monthly active investors

Zerodha was flexing a lot about their less developers working on things, their expenses and their profit. Groww on the other side added so many features and continues to do so. I hardly see anything on Zerodha Kite, no US investment, no MFs, no money tracking etc

Groww has users only because of its huge marketing spree. Groww is still in losses and everyone knows the PnL of Zerodha. Zerodha still miles ahead of Groww atleast for the next few years. Trust on Zerodha is second to none when compared to other brokers out there. And that too especially among the big traders who contribute a large chunk of their total revenue.

I invest in stocks on Zerodha and invest in MFs on Groww. Tons of folks I know do the same. The day Zerodha gets into this space, things might be different... :)

here, the active investor for Groww might be mainly mutual fund investors from whom Groww doesn't get any revenue.... For Zerodha it's stock market investors who generate revenue for Zerodha

Groww does not charge AMC

Groww is a window shopping app for people entering into markets eventually landing into zerodha-verse Really who ll use Groww for trading, when zerodha has streak and sensibull free

I use groww exclusively because its all in one ( no seperate broker for MF) and overall seemed easier to onboard. Also, may I get more context on the assumption on why it is tier2/3 students?

I use Scripbox for MF. These are not direct MF but they automate selection for you based on criteria set by you

AngelOne be like, Peache to dekho

Angel Broking user since 2017, also have account in zerodha rarely use that (don't like their terms / restrictions)

I have accounts in both, and I prefer Groww for F&O trading because of the simplistic UI.

I use Groww for Mutual Funds and Zerodha for Stocks . Lot of people I know do the same. Prefer Groww to Mutual Funds than Zerodha Coin. Used to be in Paytm Money , however their product lost its sheen during 2021 after their new CEO and Product Head came in and I had some CS issues as well

I think in some podcast, Nithin mentioned that almost more than 80% of their revenue comes from day traders and F&O traders. They hardly get revenue from long term holders. This is currently not the case for Groww. On top of it, Zerodha is totally bootstrapped and have earned a lot of revenue. For Groww to come to that position, it will take some few years and cash burn. Also, Zerodha applying for AMC license is one step ahead of Groww. If their fund works out, they will be able to make a good amount of money via MF brokerage, without chunking fees for MF managers(as their funds are going to track the indexes).

I worked at Groww till 2021. Coming from the CEO Lalit, he said that we needed to scale organically since the MF product didn’t get us any revenue because we chose to go for direct plans in favour of the customers sacrificing short term profit. Just like Amazon, Sachin at Flipkart, and the other ex flipkartians at Groww, customer obsession was taught from day 1. Let me tell that we invested on our youtube channel, our blog, worked with finfluencers that utilised our referral product before any of our competitors and groww digest. Built calculators and focused on product led growth. Cracked SEO big time. performance was mostly to retain and reactivate users. Yes AUM of customers is much lower than zerodha. but groww is targeting retail investors earning their trust by educating T2,T3 Indians, zerodha categorically doesn’t want them since there’s not much revenue from them. They even have a maintenance charge and account opening charge to deter non traders. Groww, I believe in the next 2 years will compete more with phonpe, cred than zerodha. The best companies start spending on advertising when their competitors can’t outbid them. So it makes sense now for Groww to spend on IPL.

The target audience is different, groww is for beginners who want to invest in stocks with a neat UI or in mutual funds. Whereas, zerodha is for traders mostly, that's where they make the most money.

While it's great to have a higher monthly active investor volume, I think what needs to be focused on more is the value of each customer. Groww attracts the lower value customers. Say it gives 500 referral bonus. Mostly people you are below 30 and won't have a lot of money will go for such schemes. The otherwise higher volume (by monetary value) investors will go with Zerodha because they don't charge a brokerage which will save them a lot of money

Stock brokers make money from their top 5% high value, high frequency traders. Highly doubt that groww's user mix has a lot of these players

Groww creates demat account for folks who want to just invest in MF. As other mentioned, people doing use Coin for MF as it's in demat form. It's just number hype. If they want, they should let the revenue speak for themselves rather than demat account numbers.

I use kuvera for MF and zerodha for stocks

I wish they had a free delivery option. That's the only reason I use Kite instead of Groww