Talk about a growth story! Online stock broking platform Groww is all set to pip market leader Zerodha in terms of active investors next month. This and more in today’s ETtech Morning Dispatch. The stock broking world could see a new leader next month as Groww gets set to upend Zerodha from its leadership perch. While exact numbers will be released by NSE in October, multiple sources said that given its growth rate — 6.2 million active clients in August already — Groww will surpass Zerodha’s 6.3 million figure this month.
What does this mean? The NSE defines an active investor as one who performs at least one trade in a year. While this number by itself is not indicative of the popularity of a broking platform, it definitely shows the rapid pace of growth for the Peak XV-backed startup, which got into stock broking in 2020. Zerodha had been leading the race since 2019.The galloping horse: Zerodha took almost a decade to become a leader in the stock broking world. But Groww caught up in just three years, using its own social media channels, videos and blogs aggressively to attract customers. It’s also big on advertisements on television, especially cricket and online, and reaches out to potential customers via Facebook and Google.
ETtech In-depth: Sebi’s crackdown on finfluencers unlikely to stop fraudGroww cofounder Harsh Jain told ET that they do not use any finfluencers or affiliates to acquire new customers.Zerodha’s slower growth: Zerodha has been growing its user base in a very calculated manner. Unlike its peers, it charges customers for opening accounts, and has never done promotional programmes on television or online channels. It used to run a large referral programme, which it recently shut down since Sebi is looking to regulate the finfluencer world.