Groww IPO

Groww IPO: What sets Groww apart?

Its margins. It has the highest net profit margin in the industry, and the race is not close.

Its net profit margin, which stands at 45% is almost double that of Angel One (22%) and 1.5 times that of Motilal Oswal (30%).

One of the primary reasons for this is that brokers like Angel One and Motilal Oswal have to pay something called a fee and commission expense. The bulk of this expense goes to sub-brokers or agents who help acquire clients and facilitate trades. Groww, on the other hand, doesn’t pay any such fees.

This is because while other brokers rely on “push” to generate revenue from end investors, Groww’s “pull” is more organic. It has a connection with its customers, and they come to the platform organically to invest. This is why Groww’s brand is so strong.

Valuation Guru Aswath Damodaran often likes to say that a company’s brand has no value if it doesn’t reflect in the numbers. It should be quantified. Groww’s brand is reflected in its profit margins.