Billionbrains Garage Ventures Limited

Groww views the asset management business in India as having huge potential for growth over the next few decades. The recent partnership with State Street, one of the world's largest asset managers, is expected to accelerate Groww's capability building, enhance credibility, and provide global access for both Indian and foreign investors for products. This partnership involves a primary and secondary cash infusion into the AMC business from the parent entity, with regulatory approvals from SEBI still pending. Management aims to significantly scale the AUM and user base, leveraging global practices and knowledge from State Street.

The acquisition of Fisdom was consolidated in October, and the integration process is ongoing. Groww is building out its wealth management offerings for both existing Groww customers and affluent clients. While it is still in a very early stage, management expects to see quarter-on-quarter scale-up and growth from both the acquired Fisdom business and new offerings to Groww's customer base. The focus is on building a full-fledged business with powerful technology and products for HNIs and wealth partners.

The company reported 0.26 million active users in commodity derivatives at the end of December 2025. The activation ratio for broking transacting users improved to 67-68% from closer to 60% previously, driven by new offerings like commodities and IPOs. The blended realization per order on the stock side improved to INR19.9. The company recorded 5.4 million orders per day on the derivative side and 2.3 million orders per day on the stock side. The MTF segment is growing, adding roughly INR600 crores almost every quarter, and now contributes 6% to total revenue.

Groww's EBITDA margin is currently "63% plus." Management indicated that profit increased quarter-on-quarter, although it decreased year-on-year due to a one-off^📎 reversal in the prior year. EPS also showed an increase. The company's cost structure is characterized by approximately 10% variable costs, with the rest being fixed. Fixed costs, including appraisals and inflation, are expected to grow roughly 10-20%. Faster revenue growth is anticipated to lead to higher EBITDA in the future due to operating leverage.

The company has provisioned INR2.5-3 crores for gratuity related to new labor laws, with potential adjustments as more clarity emerges. Management noted that the market for new customer acquisition has slowed down in the industry due to less favorable market conditions, leading to a focus on optimizing existing customer engagement. Groww avoids unregulated products like crypto and prediction markets, focusing on regulated offerings like SLBM once it matures. They also noted that 80-90% of their users make profits, addressing concerns about retail losses in derivatives.

Groww's strategy involves diversification by growing new businesses faster than existing ones, increasing their contribution to overall revenue. They are not focused on high-frequency trading (HFT) but ensure their tech infrastructure meets customer speed expectations and provides high reliability, including a "Groww Lite" version for critical actions during market volatility^🌐. The company is still in a high growth phase and plans to reinvest capital from its IPO and ongoing operations into building new businesses, thus not expecting to declare dividends in the near future.