Groww's FY24 Profit After Tax jumps fourfold to INR 297 crore, with revenue doubling.

Groww Invest Tech, the fintech unicorn operating Groww, experienced a significant 123% year-on-year (YoY) increase in operating revenue, reaching INR 2,899 Cr in FY24, up from INR 1,294 Cr in FY23. Credit rating agency ICRA attributed this revenue surge to the company’s growing client base and increasing broking volumes. However, ICRA also highlighted Groww's exposure to stiff competition, regulatory shifts, and technological risks.

In FY24, Groww recorded a fourfold YoY rise in net profit, reporting INR 297.8 Cr compared to INR 73.1 Cr in FY23. The company also achieved a return on net worth (RoNW) of 40.3%, despite considerable expenses for software, server, and technology services from its parent company. ICRA noted that although Groww entered the margin trading facility (MTF) business, leading to increased borrowing, its financial leverage is expected to remain manageable.

Groww, previously known as Nextbillion Technology Private Ltd, topped the charts in active NSE clients as of August 2024, holding a 25% market share. Despite its growth, the broader discount broking industry, including Groww, may face profitability challenges due to recent SEBI regulations on uniform fee structures.

Groww Invest Tech is a subsidiary of Billionbrains Garage Ventures, which manages several other businesses, including Groww Pay Services, Neobillion Fintech, and Groww Insurance Broking. Backed by investors such as Peak XV Partners and Tiger Global, Groww has raised over $393 Mn in funding. Earlier this year, the company shifted its domicile back to India, merging its US-based holding entity with Billionbrains Garage Ventures.

In FY23, Groww’s parent company, Billionbrains Garage, saw a net profit of INR 448.7 Cr, recovering from a net loss of INR 239 Cr the previous year, with operating revenue more than tripling to INR 1,277.8 Cr from INR 351 Cr in FY22.