Groww is expanding beyond its core stock broking business as India’s fintech market enters a more mature phase. The company is building newer businesses in wealth management, lending, bonds, mutual fund advisory and international investing as it seeks to diversify revenue.
Groww’s Business Model Is Entering A New Phase
Groww has built its reputation by making stock and mutual fund investing easier for retail investors, particularly younger users and first-time investors. But the company’s strategy is now moving beyond its original broking-led model.
Groww CEO and co-founder Lalit Keshre has said newer businesses are expected to gradually reshape the company’s revenue mix as they scale. In the June quarter, equity derivatives and stock trading accounted for 68.4% of total income, down from 75.7% a year earlier.
That change does not mean broking is becoming unimportant. Groww continues to have a large customer base and significant activity across stocks and derivatives. Its investor-relations data shows 23.6 million transacting users and customer assets of ₹3.77 trillion as of October 8, 2026.
Instead, the company is attempting to use that large customer base to offer a broader range of financial products.
Why Indian Fintechs Are Looking Beyond Their Core Businesses
The shift at Groww reflects a wider change across India’s listed fintech sector.
During the industry’s earlier growth phase, companies could expand rapidly by bringing millions of customers onto digital platforms. But as the market matures, simply adding users becomes less sufficient. Companies need to increase the value generated from existing customers while building revenue streams that are less dependent on one product.
The Economic Times has reported that listed fintech companies are widening their revenue bets as growth in their core businesses normalises and investors increasingly look for more predictable sources of income. Groww, Paytm, Pine Labs and Kissht are among the companies pursuing adjacent businesses.
For Groww, diversification is particularly relevant because stock market activity can fluctuate with market conditions. Trading volumes, investor sentiment and regulatory changes can all influence broking-related revenue.
A broader financial-services platform can potentially reduce that dependence.
Wealth Management Becomes A Major Growth Area
One of Groww’s most important expansion areas is wealth management.
The company has been moving toward serving customers beyond basic stock and mutual fund investing. In February, Keshre said Groww was increasing its focus on wealth management and lending to reduce dependence on its core broking business.
The opportunity is significant because India’s digital investing population is becoming more diverse. Investors who initially entered the market through simple mutual fund or stock products can eventually require more sophisticated financial services as their assets increase.
Groww’s earlier acquisition of Fisdom also fits into this strategy. Groww said the transaction was completed in October 2025, while Fisdom had generated ₹166.3 crore in revenue in the preceding year. Groww also noted that affluent users were growing faster than its overall active-user base and accounted for 34% of total customer assets in the period discussed in its shareholder letter.
This gives the company an opportunity to move from being primarily an investment execution platform toward a broader wealth-management relationship.
Lending And Credit Add Another Revenue Stream
Lending is another part of Groww’s diversification strategy.
According to Keshre’s comments reported by Economic Times, lending contributed about 6% of Groww’s revenue, or approximately ₹232 crore annually, at the time of the February 2026 report.
The company’s current investor-relations disclosures also list personal loans and loans against securities among its products.
Credit can provide fintech companies with another source of revenue, but it also carries different risks from broking. Lending businesses have to manage credit quality, regulatory requirements and customer repayment behaviour.
For Groww, the objective appears to be controlled diversification rather than replacing its investment platform.
The company can potentially use information from its existing customer relationship to offer relevant financial products, while maintaining its primary position as an investment platform.
Groww Is Expanding Its Wealth Product Range
Groww’s diversification is not limited to lending.
The company has been adding products intended to cover more stages of an investor’s financial journey. Its current product portfolio includes mutual funds, stocks, ETFs, IPOs, margin trading, equity and commodity derivatives, personal loans and loans against securities.
It has also expanded into wealth-oriented products.
In 2026, Groww introduced regular mutual funds through its Groww Prime platform, adding an advisory-oriented option alongside its longstanding direct mutual fund offering.
The company is also expanding into bonds and wealth advisory, while testing international stock investing through GIFT City. Groww’s CEO has described the next phase of the business as helping customers manage a broader part of their financial lives.
This represents an important change in positioning. Instead of competing only for the transaction, fintech platforms increasingly want to remain involved across the customer’s financial journey.
International Investing Could Broaden Groww’s Reach
Another area to watch is international investing.
Groww has secured regulatory approvals required to offer US stock investing through GIFT City and has been testing the platform, according to reporting on the company’s expansion plans.
For Indian investors, access to overseas equities can add another investment option beyond domestic stocks and mutual funds.
For Groww, international investing can also strengthen its position as a comprehensive investment platform.
However, the opportunity comes with additional regulatory and operational complexity. Cross-border investing involves different market structures, compliance requirements, taxation considerations and currency-related issues.
The company’s ability to make such products simple for ordinary investors will be important if international investing becomes a meaningful part of its business.
AI Is Becoming Part Of The Fintech Expansion
Artificial intelligence is also becoming increasingly important in the next phase of fintech.
Groww has been expanding its use of technology across its investment and advisory offerings. The company has indicated plans around AI-powered mutual fund advisory and other technology-led wealth services.
The wider fintech industry is moving in a similar direction. Economic Times reported earlier this year that major Indian fintech companies were increasingly using AI to improve customer experiences, operating efficiency and new financial services.
For wealth management, AI could potentially help investors understand financial information, compare products and receive more personalised guidance.
But financial advice also requires careful handling. Accuracy, suitability, transparency and regulatory compliance remain important, particularly when technology is involved in decisions involving people’s savings and investments.
Tier-2 And Tier-3 Users Remain Important
Groww’s expansion is also significant because its user base extends well beyond India’s biggest cities.
The company’s investor disclosures say it had more than 16.6 million first-time investors from Tier-2, Tier-3 and Tier-4 cities as of June 30, 2026. It also reported that 84% of its transacting users were outside India’s top six cities.
That gives Groww a substantial potential market for financial products outside traditional metropolitan centres.
As digital payments, smartphones and online investing become more common across smaller cities, fintech companies can increasingly reach customers who previously depended on banks, local financial intermediaries or traditional investment channels.
The challenge is that financial literacy and customer needs can vary considerably across regions. A product designed for an experienced investor in Mumbai may not work in the same way for a first-time investor in a Tier-2 or Tier-3 city.
Groww’s ability to keep products simple while expanding their range will therefore remain important.
What Groww’s Strategy Means For India’s Fintech Market
Groww’s evolution reflects a broader transition in Indian fintech.
The first major phase was about digitisation and customer acquisition. The next phase is increasingly about building complete financial ecosystems around existing customers.
For companies like Groww, that means moving from one core transaction to multiple financial relationships. A customer might begin with a mutual fund SIP, later invest in stocks, use margin financing, explore bonds, seek wealth advice or eventually access international markets.
This strategy can increase customer engagement and diversify revenue. But it also creates greater operational and regulatory complexity.
Groww’s challenge will be to expand without losing the simplicity that helped it attract millions of users in the first place.
The company’s latest numbers show that its core platform remains large. Its transacting users stood at 23.6 million and customer assets at ₹3.77 trillion as of October 8, 2026.
The next question is how much of that scale can be converted into sustainable growth from businesses beyond broking.
Key Takeaways
- Groww is reducing its dependence on stock broking by expanding into wealth management, lending, bonds, advisory and international investing.
- Stock and equity derivatives contributed 68.4% of total income in the June quarter, compared with 75.7% a year earlier.
- Groww reported 23.6 million transacting users and ₹3.77 trillion in customer assets as of October 8, 2026.
- More than 16.6 million first-time investors on the platform came from Tier-2, Tier-3 and Tier-4 cities as of June 2026.
Frequently Asked Questions
1. Why is Groww expanding beyond stock broking?
Groww is diversifying its revenue sources as India’s fintech market matures. The company is expanding into wealth management, lending, advisory, bonds and international investing to reduce its reliance on stock and derivatives trading.
2. What new businesses is Groww focusing on?
Groww is focusing on wealth management, lending, mutual fund advisory, bonds and international stock investing. Its current product portfolio also includes mutual funds, stocks, ETFs, IPOs, derivatives and loans.
3. How important are Tier-2 and Tier-3 cities for Groww?
They are a major part of Groww’s customer base. The company reported more than 16.6 million first-time investors from Tier-2, Tier-3 and Tier-4 cities as of June 30, 2026, while 84% of transacting users were outside India’s top six cities.
4. Does Groww’s diversification mean stock broking is declining?
Not necessarily. Stock trading and equity derivatives remain Groww’s largest source of income. The change is that their share of total income has declined as newer businesses grow. The company’s strategy is to diversify rather than abandon broking.
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