Dhan Crosses 1 Mn Users Mark in Feb; Groww Continues to Lead Stockbroking Space

Why It Matters

The user‑growth trends reshape market share dynamics, rewarding platforms that combine scale with low‑cost digital experiences. Investors watch these shifts as indicators of fintech valuation upside and competitive pressure in India's wealth‑creation market.

Key Takeaways

• Groww leads with 12.75 million users, 28% market share
• Dhan reaches 1 million users, 2.24% market share
• Zerodha rebounds, adding 10k users, 15.11% share
• Upstox market share falls to 4.42% after losses
• Traditional brokers add modest accounts, growth slows

Pulse Analysis

India's retail broking sector posted modest expansion in February, with active users climbing to 45.4 million, up 350 k from January. The incremental growth reflects a broader shift toward digital investing, as millennials and first‑time traders migrate from traditional channels to app‑based platforms. While the overall user base remains concentrated among a few large players, the steady rise in active accounts signals healthy demand for low‑cost brokerage services and a maturing market that can sustain higher transaction volumes. This backdrop sets the stage for competitive jockeying over market share.

Groww cemented its leadership by adding 2.65 lakh new clients in February, pushing its total to roughly 12.75 million and expanding its market share to 28.03 percent. The platform’s user‑growth momentum translated into a 4 percent rally in its share price, lifting market capitalisation to about ₹96,117 crore ($10.6 billion). Analysts attribute the surge to Groww’s aggressive product rollout, seamless onboarding, and competitive pricing that appeal to cost‑conscious investors. The firm’s ability to convert user acquisition into tangible valuation uplift underscores the premium investors place on scalable fintech models in India’s fast‑growing wealth‑creation ecosystem.

Meanwhile, incumbents Zerodha and Angel One posted modest gains, each adding just over 10 k accounts, while Upstox slipped further, losing 27 k users and seeing its share dip to 4.42 percent. Emerging brokers Dhan and INDmoney demonstrated the sector’s openness to new entrants, with Dhan crossing the 1 million‑user threshold and capturing 2.24 percent of the market. Traditional houses such as ICICI, SBI and Kotak continued incremental growth, highlighting a bifurcated landscape where legacy firms rely on brand trust while agile startups leverage technology and niche offerings. The evolving competitive mix suggests continued consolidation pressure and ample opportunity for investors targeting high‑growth fintech platforms.