Groww, Upstox, Paytm money have cumulative net losses since their inception.
Groww has turned positive since FY20-21 but is yet to cover the accumulated losses. Moreover, the shareholding of groww is quite fragmented and the founders do not own a sizeable share of the company.
In Angel one, the promoter shareholding is 38.21% and the FY24 net profit is RS 1126 Crore. So, the share of net profit attributable to promoters is rs 430.2 crore.
ICICI Securities net profit for FY24 is s 1697 crore and promoter shareholding is 74.73%. So the share of net profit attributable to promoters is 1268.1 crore.
Kotak securities made 865.22 crore in FY23 and the promoter holding is 25.90%. So the share of net profit attributable to promoter is 224 crore.
HDFC Securities FY23 Net profit was 777.2 crore. Promoter holding is 20.87%. So net profit attributable to promoters is 162.2 crore.
Motilal oswal financial for FY23 is 935 crore and promoter holding was 69.68%. So share ho net profit attributable to promoter is 651.5 crore.
According to google, Nithin an Nikhil Kamath together hold close to 60% share of Zerodha. Zerodha has been profitable from year 1 of operations. FY23 Net profit is 2907 crore. Share of net profit attributable to promoters is 1744 crore.
So, the number of active users is not as important a metric as high value customers. Many brokers have been giving cash incentives to customers to open accounts because they use the number of customers metric to go and raise funds from their investors.
The cost of acquisition of many customers is not being adequately recovered by brokers because accounts are opened in many cases just to get the cash incentive by customer and to show the high number of account openings to the investors/VC.
So, think to yourself, if you own and operate a mall, do your want foot traffic where 95% of them are simply doing window-shopping or do you want high spenders who actually buy stuff from the shops so that the mall can continue to run profitably. Hopefully this will clear some misconceptions.
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In the stock broking industry, acquiring a large customer base, even with a dip in revenue, can be a strategic move for a company with a long-term vision for several reasons:
1. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV):
- Stockbrokers typically earn revenue through commissions or fees on trades. Initially, attracting new customers with lower fees or no fees, lead to lower immediate revenue per customer. However, the goal is to convert these customers into long-term investors who trade consistently, generating a higher Lifetime Value (LTV) over time. A larger customer base provides a bigger pool to cultivate loyal, high-value clients.
2. Network Effects and Brand Recognition:
- In the stockbroking industry, a larger customer base can create a network effect. As more people use the platform, it becomes more attractive to others seeking a vibrant and active trading community. This can snowball into increased brand recognition and attract even more users organically.
3. Economies of Scale and Diversification:
- A larger customer base allows a broker to leverage economies of scale. They can negotiate better deals with exchanges and data providers, reducing operational costs and potentially leading to lower fees for all customers in the long run. Additionally, a large client base allows the broker to diversify its revenue streams. They can explore offering educational resources, premium investment tools, or wealth management services, generating additional income beyond basic trading commissions.
4. Data Advantage and Personalized Offerings:
- A vast user base provides valuable data on investor behavior, trading patterns, and financial goals. This data can be used to personalize investment recommendations, develop user centric features, and ultimately improve customer satisfaction and retention.
5. Competitive Advantage in a Crowded Market:
- As the stock broking industry is becoming increasingly competitive, focusing on customer acquisition, the company can establish a strong market position and gain competitive advantage.
Also it is important to consider, simply acquiring new customers isn’t enough. Onboarding them effectively and providing educational resources are crucial to ensure they understand the platform and feel comfortable investing. Similarly focus on Customer Retention by devising strategies to retain acquired customers and maintain their engagement is essential to maximize LTV and achieve long-term success.
Overall, for a stockbroker with a long-term vision, sacrificing some initial revenue to acquire a large customer base can be a strategic investment. By focusing on customer lifetime value, network effects, and data-driven personalization, the company can build a loyal client base and achieve sustainable profitability over time.
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could you please provide latest active client list on april.
NSE Data for April 2024 (Archived) -
Symbol Meaning | 
- No change | 
- Moved up | 
- Moved down | 
- Newly added |
| S. No | Trading Member Name (aka Name of Stock Broker) | Active Clients | Since last month | Change |
|---|---|---|---|---|
| 1 | NEXTBILLION TECHNOLOGY PRIVATE LIMITED (GROWW) | 9931232 | +392623 | |
| 2 | ZERODHA BROKING LIMITED | 7392836 | +105688 | |
| 3 | ANGEL ONE LIMITED | 6302598 | +190719 | |
| 4 | UPSTOX SECURITIES PRIVATE LIMITED | 2555618 | +38971 | |
| 5 | ICICI SECURITIES LIMITED | 1862161 | +16959 | |
| 6 | KOTAK SECURITIES LTD. | 1248531 | +39583 | |
| 7 | HDFC SECURITIES LTD. | 1114215 | +16468 | |
| 8 | MOTILAL OSWAL FINANCIAL SERVICES LIMITED | 893218 | +13589 | |
| 9 | SBICAP SECURITIES LIMITED | 891155 | +27331 | |
| 10 | PAYTM MONEY LTD. | 797157 | -4989 | |
| 11 | SHAREKHAN LTD. | 671884 | +7031 | |
| 12 | 5PAISA CAPITAL LIMITED | 550689 | +1642 | |
| 13 | MONEYLICIOUS SECURITIES PRIVATE LIMITED (DHAN) | 512564 | +42603 | |
| 14 | IIFL SECURITIES LIMITED | 444044 | +4907 | |
| 15 | MIRAE ASSET CAPITAL MARKETS ( INDIA ) PRIVATE LIMITED | 383186 | +30249 | |
| 16 | INDMONEY PRIVATE LIMITED | 373042 | +29537 | |
| 17 | AXIS SECURITIES LIMITED | 371589 | +7685 | |
| 18 | GEOJIT FINANCIAL SERVICES LIMITED | 246824 | +3110 | |
| 19 | FYERS SECURITIES PRIVATE LIMITED | 231738 | +8940 | |
| 20 | CHOICE EQUITY BROKING PRIVATE LIMITED | 197727 | +4182 | |
| 21 | SMC GLOBAL SECURITIES LTD. | 182535 | +3823 | |
| 22 | NUVAMA WEALTH AND INVESTMENT LIMITED. | 174917 | +1328 | |
| 23 | ALICE BLUE FIN SVCS P LTD | 165397 | +1955 | |
| 24 | RELIGARE BROKING LIMITED | 145382 | +1399 | |
| 25 | NIRMAL BANG SECURITIES PVT. LTD. | 143486 | +2240 | |
| 26 | MARWADI SHARES AND FINANCE LIMITED | 130184 | +2735 | |
| 27 | ANAND RATHI SHARE AND STOCK BROKERS LIMITED | 127921 | +2657 | |
| 28 | FINVASIA SECURITIES PRIVATE LIMITED | 121529 | +8223 | |
| 29 | JAINAM BROKING LIMITED | 104881 | +3304 | |
| 30 | JM FINANCIAL SERVICES LIMITED | 100781 | +4370 | |
| 31 | SAMCO SECURITIES LIMITED | 89817 | -44 | |
| 32 | ADITYA BIRLA MONEY LIMITED | 82790 | +2311 | |
| 33 | SWASTIKA INVESTMART LIMITED | 80765 | +197 | |
| 34 | NJ INDIA INVEST PRIVATE LIMITED | 80449 | +2002 | |
| 35 | TRADEBULLS SECURITIES (P) LTD. | 78154 | +1719 | |
| 36 | YES SECURITIES (INDIA) LIMITED | 72962 | +1838 | |
| 37 | RELIANCE SECURITIES LIMITED | 72675 | -301 | |
| 38 | GLOBE CAPITAL MARKET LIMITED | 64035 | +915 | |
| 39 | MASTER CAPITAL SERVICES LIMITED | 61273 | +1209 | |
| 40 | IDBI CAPITAL MARKETS & SECURITIES LTD. | 55635 | +344 | |
| 41 | BONANZA PORTFOLIO LTD. | 55083 | +984 | |
| 42 | ARIHANT CAPITAL MARKETS LIMITED | 52229 | +1687 | |
| 43 | PHONEPE WEALTH BROKING PRIVATE LIMITED | 49080 | – | |
| 44 | INTEGRATED ENTERPRISES (INDIA) PRIVATE LIMITED | 48353 | +685 | |
| 45 | PRABHUDAS LILLADHER PVT. LTD. | 45983 | +1128 | |
| 46 | PROFITMART SECURITIES PRIVATE LIMITED | 40396 | +203 | |
| 47 | SHRI PARASRAM HOLDINGS PVT. LTD. | 35439 | +945 | |
| 48 | STOCKHOLDING SERVICES LIMITED | 35231 | -35254 | |
| 49 | GOODWILL WEALTH MANAGEMENT PVT LTD | 34801 | +151 | |
| 50 | DHANI STOCKS LIMITED | 33459 | +623 | |
| 51 | BAJAJ FINANCIAL SECURITIES LTD. | 33002 | +1202 | |
| 52 | ASTHA CREDIT & SECURITIES (P) LTD | 30878 | +339 | |
| 53 | FORTUNE CAPITAL SERVICES PRIVATE LIMITED | 30547 | +734 | |
| 54 | VNS FINANCE & CAPITAL SERVICES LTD. | 28623 | -458 | |
| 55 | EUREKA STOCK & SHARE BROKING SERVICES LIMITED | 27141 | +439 | |
| 56 | SOUTH ASIAN STOCKS LTD. | 20851 | -76 | |
| 57 | ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD. | 19483 | +291 | |
| 58 | ALANKIT IMAGINATIONS LIMITED | 17406 | +188 | |
| 59 | FINWIZARD TECHNOLOGY PRIVATE LIMITED | 16869 | +813 | |
| 60 | PHILLIPCAPITAL (INDIA) PVT. LTD | 16300 | +162 | |
| 61 | RUDRA SHARES & STOCK BROKERS LIMITED | 13345 | +223 | |
| 62 | INVENTURE GROWTH & SECURITIES LIMITED | 12611 | +180 | |
| 63 | GEPL CAPITAL PRIVATE LIMITED | 10678 | +183 | |
| 64 | PUNE E STOCK BROKING LIMITED | 10562 | +136 | |
| 65 | STANDARD CHARTERED SECURITIES (INDIA) LIMITED | 9217 | +184 | |
| 66 | SHREE BAHUBALI STOCK BROKING LTD | 8710 | +81 | |
| 67 | AIRAN FINSTOCKS PRIVATE LIMITED | 7985 | – | |
| 68 | CAPSTOCKS & SECURITIES (INDIA) PRIVATE LIMITED | 7281 | – | |
| 69 | KRCHOKSEY SHARES AND SECURITIES PRIVATE LIMITED | 7164 | +70 | |
| 70 | MANDOT SECURITIES PRIVATE LIMITED | 6694 | +130 | |
| 71 | SUNLIGHT BROKING LLP | 6651 | +88 | |
| 72 | RAGHUNANDAN CAPITAL PRIVATE LIMITED | 6250 | +116 | |
| 73 | SHARE INDIA SECURITIES LIMITED | 6011 | +332 | |
| 74 | IFCI FINANCIAL SERVICES LIMITED | 5690 | +136 | |
| 75 | KALPATARU MULTIPLIER LTD. | 4748 | – | |
| 76 | COCHIN STOCK BROKERS LTD. | 4323 | +51 | |
| 77 | ATS SHARE BROKERS PRIVATE LIMITED | 4034 | +74 | |
| 78 | DB (INTERNATIONAL) STOCK BROKERS LTD. | 3444 | – | |
| 79 | FINDOC INVESTMART PVT. LTD. | 2392 | – | |
| 80 | LOHIA SECURITIES LTD. | 1947 | – | |
| 81 | AXIS CAPITAL LIMITED | 1747 | – | |
| 82 | CIL SECURITIES LTD. | 1713 | – | |
| 83 | GANGANAGAR COMMODITY LIMITED | 1579 | -3221 | |
| 84 | RRS SHARES & STOCK BROKERS PVT. LTD | 1564 | – | |
| 85 | INTERACTIVE BROKERS (INDIA) PRIVATE LIMITED | 1236 | -13 | |
4 Likes
Lot of new entrants this month… that too phonepe with 49k new members in just a month?
They have crores of UPI users. One popup in app is enough to make people open demat, especially if they blast FREE FREE FREE