How Does Groww Make Money?
Groww started in 2016 as a simple app for investing in mutual funds. It grew into India's largest stockbroker by active clients, listed on the stock exchanges in November 2025, and reported ₹2,083 crore in net profit for FY26.
How does an app that made investing feel free and simple earn that much? Mostly from trading, increasingly from lending, and from a growing set of wealth products.
🎯 Quick Answer (30-Second Read)
- FY26: revenue from operations about ₹4,645 crore (up from ₹3,902 crore), net profit about ₹2,083 crore (up from ₹1,824 crore).
- Main earner: brokerage on stock and F&O trades.
- Growing: margin trading (lending to clients to buy shares) and credit products.
- Mutual funds: direct plans are commission-free for investors, so funds are mainly a customer acquisition and engagement engine; Groww also runs its own asset management company.
- Q1 FY27: revenue jumped 66% year on year to about ₹1,501 crore.
Groww in Numbers
Where the Money Comes From
stocks, F&O, intraday"] G --> MTF["Margin trading facility
interest on lending"] G --> CR["Credit
personal loans via lending arm"] G --> AMC["Groww Mutual Fund
(asset management fees)"] G --> OT["Other: wealth,
payments, platform fees"] MF["Direct mutual funds
(no commission)"] -.->|"bring in first-time
investors cheaply"| BR
1. Brokerage
Groww charges per order on stock delivery and trading, and on futures and options. Unlike Zerodha, Groww charges on delivery trades too. F&O traders generate the biggest share of brokerage, as across the industry.
2. Margin Trading and Credit
Lending is the fastest-growing piece. With the margin trading facility, investors borrow to buy more shares, and Groww earns interest. Groww also offers personal credit through its lending business. Lending makes revenue less dependent on trading volumes.
3. Mutual Funds and Asset Management
Groww started with direct mutual funds, which carry no distributor commission. That made it an easy, trusted first app for new investors, who later started trading stocks. Groww also runs its own asset management company (Groww Mutual Fund), which earns fees on assets it manages.
Groww vs Zerodha
| Groww | Zerodha | |
|---|---|---|
| Funding | VC-backed, listed Nov 2025 | Bootstrapped, private |
| Delivery brokerage | Charged | ₹0 |
| Core audience | First-time and younger investors, smaller cities | Experienced traders and investors |
| FY26 profit | ~₹2,083 crore | ~₹4,238 crore (reported) |
| Diversification | Lending, AMC, wealth | Mostly broking + interest |
Groww overtook Zerodha in active clients, while Zerodha has remained more profitable. Both were hit when SEBI tightened F&O rules, which pushed brokers to diversify. (See How Does Zerodha Make Money?.)
Risks
- Trading volumes: brokerage still depends on how actively people trade
- Regulation: SEBI rules on F&O and broker income can change revenue quickly
- Credit risk: lending growth brings loan losses if borrowers don't repay
- Competition: Zerodha, Angel One, Upstox and banks' apps
Frequently Asked Questions
How does Groww earn money if mutual funds are free?
Direct mutual funds carry no commission, so Groww earns little from them directly. They attract first-time investors cheaply. Groww makes money from brokerage on stock and F&O trades, interest from margin trading and credit, and fees from its own asset management company.
Is Groww profitable?
Yes. Groww's parent, Billionbrains Garage Ventures, reported net profit of about ₹2,083 crore in FY26 on revenue from operations of about ₹4,645 crore, up from ₹1,824 crore profit in FY25.
When did Groww list on the stock market?
Groww's parent company, Billionbrains Garage Ventures, listed on Indian stock exchanges on 12 November 2025 at ₹114 per share, a 14% premium to its IPO price of ₹100.
Conclusion
Groww makes most of its money from brokerage, with margin lending, credit and asset management growing fast. Free direct mutual funds and a simple app bring in new investors, and a share of them become traders and borrowers. That model produced about ₹2,083 crore of profit in FY26 and a successful listing.
Sources
- Free Press Journal: Groww parent Billionbrains Q4 FY26 results
- Kotak Neo: Billionbrains Garage Ventures Q4 FY26 results
- Kotak Neo: Q1 FY27 results
- Groww: Pricing and charges
Last verified: 2 November 2026.
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