Cred owned Spenny eyes stock broking licence to rival Groww. Cred, a leader in India’s financial services space, is expanding with its subsidiary, Spenny. The company has applied for a stock broking licence to challenge major players like Zerodha and Groww. This move will help Cred diversify its revenue streams, including transaction fees, advisory services, and account management charges.
Cred-owned Spenny expands into stock broking
Cred’s main revenue comes from its lending services. However, the addition of stock broking will complement its existing offerings. Earlier in 2024, Cred acquired Kuvera, a platform for mutual funds and digital gold. This acquisition is part of its strategy to build a comprehensive financial ecosystem. Spenny’s stock broking licence application marks a key step in this plan.
Spenny’s move to compete with Groww and Zerodha
The stock market has grown rapidly in India. With over 175 million demat accounts as of September 2024, the sector is more competitive than ever. Zerodha leads with 8 million users, followed by Groww with 12.3 million. To compete, Cred will need to leverage its existing user base of 13 million, including 11 million monthly transacting users.
Read More: Groww’s Surge in the Indian Stock Broking Market
Spenny’s financial growth and strategy
As Cred moves into this market, it faces tighter regulations from the Securities and Exchange Board of India (SEBI). The government focuses on retail trading in futures and options (F&O), which may affect brokerage revenues. Despite these challenges, India’s growing interest in the stock market provides opportunities for Cred to gain market share.
Cred’s market competition and expansion plans
Cred has shown strong growth. In FY24, the platform saw its revenue increase threefold to Rs 2,500 crore. Operating losses were reduced by 41%, bringing them down to Rs 609 crore. As Cred expands into stock broking, it is poised for continued success in India’s booming financial services market. With the addition of stock broking services, Cred Spenny is set to redefine India’s financial landscape, positioning itself as a formidable competitor to industry giants like Zerodha and Groww.
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