Zerodha, Groww See Erosion In User Base

SUMMARY

Groww's active user base also plunged by about 2 Lakh to 1.30 Cr in February from 1.32 Cr at the end of January 2025

Almost all brokerages were hit by the negative sentiment last month, with the cumulative active users of all platforms combined falling to 4.89 Cr from 5.02 Cr in January

While Sensex has slumped nearly 6% since January, Nifty 50 has fallen by a little over 5%

Amid the ongoing correction in the Indian equities market, investment tech unicorn Zerodha’s active user base declined to 79.57 Lakh at the end of February from 80.82 Lakh as of January 31.

This comes days after Zerodha cofounder and CEO Nithin Kamath said that the company is seeing degrowth in its business for the first time in 15 years. He estimated that there was a 30% decrease in activity across brokers.

“Combined with the true-to-market circular, we are seeing degrowth in the business for the first time since we started 15 years ago,” Kamath said in a post on X.

Market leader Groww’s active user base also plunged by about 2 Lakh to 1.30 Cr in February from 1.32 Cr at the end of January 2025, NSE data showed.

Almost all brokerages were hit by the negative sentiment last month, with the cumulative active users of all platforms combined falling to 4.89 Cr from 5.02 Cr in January.

While third largest brokerage Angel One saw its user base contracted to 76.49 Lakh, Upstox’s active user base declined to 27.89 Lakh.

Paytm Money’s active user base stood at 6.63 Lakh by the end of February from 6.91 Lakh in the previous month.

The decrease in the number of active users comes at a time when the broader market has been on a downward trajectory for the last few months. While Sensex has slumped nearly 6% since January, Nifty 50 has fallen by a little over 5%.

The uncertainty around US president Donald Trump’s tariff decisions, weak Q3 earnings of Indian companies, a recovery in the Chinese market, and a selling spree of foreign institutional investors (FIIs) are among the reasons for the fall in the market.

As a result, about half of the 32 new-age tech stocks under Inc42’s coverage have plunged to fresh all-time lows in recent times. For instance, Ola Electric, MobiKwik, RateGain and Tracxn touched new lows during intraday trading today.

Editor’s Note: The story has been edited to correct some numbers.