India’s capital markets experienced robust growth in retail participation during FY25, with the National Stock Exchange (NSE) witnessing the addition of over 84 lakh new active demat accounts. This represents a 20.5% year-on-year growth, highlighting the increasing interest among retail investors in equity markets.

By the end of March 2025, the total number of active demat accounts on NSE stood at 4.92 crore, showcasing the growing confidence and penetration of equity investing across India. Although this number had touched 5.02 crore in January 2025, a minor dip followed due to market volatility in the last two months.

Groww Leads the Pack in Account Additions

Among various brokers, Groww emerged as the clear leader, contributing more than 40% of the total new additions. The platform’s active client base jumped from 95 lakh in March 2024 to 1.29 crore in March 2025, marking a 36% year-on-year increase.

Its market share also improved significantly, rising from 23.28% in FY24 to 26.26% in FY25. This makes Groww one of the most dominant forces in India’s online brokerage ecosystem.

Key reasons behind Groww’s rise:

• User-friendly mobile interface

• Low-cost investing model

• Strong brand presence in tier II-IV cities

• Rising preference for DIY investing among youth

Strong Performances by Angel One and Zerodha

While Groww led the way, Angel One and Zerodha also showed impressive growth:

• Angel One added 14.6 lakh active demat accounts, accounting for 17.38% of the NSE’s net additions in FY25. Its market share rose to 15.38%.

• Zerodha, despite being one of the oldest digital brokers, added 5.8 lakh new accounts and maintained a 16% market share.

These trends underscore the strength of digital-first platforms in the current Indian investing landscape.

Young, Digital and From Smaller Towns

The growth in demat accounts wasn't just in numbers but also in demographics and geography. A significant portion of new investors came from tier II, III, and IV cities, highlighting the expansion of stock market awareness beyond metros.

This growth was largely driven by:

• Increased smartphone penetration

• Wider internet access

• Financial education via social media

• Aggressive outreach by fintech platforms

A new wave of young, digitally-savvy investors—including students and early-career professionals—entered the market during FY25.

Rise of Women Investors in FY25

Another major highlight of FY25 was the growing participation of women in capital markets. Nearly 25% of all new retail investors were women, marking a substantial shift in financial inclusion and empowerment.

This increase in women’s participation is being attributed to:

• Higher financial literacy

• Rise in dual-income households

• Increased awareness via social media influencers

• Targeted marketing by brokers

The trend reflects broadening demographic participation, a healthy sign for the future of India’s capital markets.

Monthly Trends and Growth Rate

• The average monthly growth in active client additions across the industry was 1.74%, indicating consistent interest despite market fluctuations.

• Digital-first brokers like Groww, Upstox, and Angel One reported higher-than-average monthly growth rates thanks to aggressive onboarding strategies and mobile-focused platforms.

Even during short-term market dips, the retail investing momentum remained largely intact, showing the resilience of the retail investor base.

Industry-Level Impact and Outlook

The FY25 trends in demat account additions point toward a deeper structural shift in India’s financial landscape:

• Retail investors are here to stay, and their growing numbers indicate rising financial literacy.

• Brokerages are expected to enhance tech offerings, improve onboarding experiences, and deepen regional presence.

• There is strong potential for further expansion, especially with increased regulatory focus on investor protection and financial education.

Future Expectations

Looking ahead to FY26, industry experts believe:

• Retail participation will continue to grow, especially from underserved regions.

• Women’s participation may rise even further, as brokers fine-tune their strategies to cater to this segment.

• Brokerage competition will intensify, leading to better services, lower costs, and more educational content.

The NSE’s performance in FY25 not only reflects a growing investor base but also showcases the democratization of India’s capital markets.

With platforms like Groww leading the way, and other players like Zerodha and Angel One keeping pace, the future looks bright for retail participation in India’s equity markets.

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