Financial servcies platform Groww continued to dominate the online broking market as the firm’s active user base surpassed 1.03 crore in May, official NSE data published on Wednesday revealed.
The financial platform added nearly 4.33 lakh active users in May and possibly accounted for a market share of over 30 per cent, reported Moneycontrol. Comparatively, Zerodha logged an active user base of 75 lakh and saw an addition in the active users by nearly 1.14 lakh in the month under review.
On the other hand, Angel One, another player in the industry, saw an addition of 1.84 lakh users in May, leading to an overall user base of 64.86 lakh, while Upstox recorded an active user base of 25.91 lakh in the month. Paytm Money, owned by Paytm’s parent company, One97 Communications, logged an active user base of 7.86 lakh people.
Earlier in May, media reports said that the active user base of Groww was anticipated to surpass 1 crore as equity markets witness a surge in activity amidst a boost in the intial public offerings from start-ups.
Start-ups such as Upstox, Groww, and Zerodha attract users by charging them nominal transaction fees for trades made in the stock market via their platform. This is why these firms are referred to as discount brokers. These brokerage platforms have given tough competition to traditional brokerages and institutions in the last ten years and have also made stock market more accessible for the common public.
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Groww overtook Zerodha in September last year and now controls a major share in the brokerage market. About a quarter of the active investors on the NSE use the platform. Data revealed that as of April this year, Groww saw a hike in its active investor base by 77.5 per cent to 99 lakh active investors as compared to the same period last year.