Top brokers lost additional 2.7 lakh clients in May 2025 after April slowdown

By May 2025, the active client base declined to 46.93 million, with the top four discount brokers shedding over 4.7 lakh clients combined.

In April 2025, India’s four largest discount brokers — Groww, Zerodha, Angel One and Upstox — collectively lost at least 2.05 lakh active NSE clients, marking the third straight month of decline. According to a Moneycontrol analysis, the sell-off accelerated in May, when they lost an additional 2.7 lakh clients, taking the total reduction since the beginning of the new financial year i.e. March to over 4.7 lakh, as per National Stock Exchange (NSE) filings.

As of May 2025, the NSE reported 4.69 crore active clients, down 3.6 percent from March.

Groww lost 2,000 clients in May, bringing its total client base to 1.28 crore. In the same month, Zerodha saw 76,000 clients leave (total base: 77.58 lakh), Angel One saw 54,000 departures (total: 74.49 lakh) and Upstox lost 46,978 (total: 26.60 lakh).

On the other hand, ICICI Securities added 3,158 clients to reach a total of 19.50 lakh.

Among the top five brokers, Groww continues to lead in absolute client numbers, with a base of 1.28 crore as of May 2025. However, its growth momentum has slowed in 2025 after a strong 2024. From March to May, Groww’s active clients fell by over 1 percent, with similar declines seen at Angel One (1.7 percent) and Zerodha (1.7 percent). Upstox faced the steepest decline at 3.2 percent, indicating possible client churn or weaker engagement. ICICI Securities, while smaller in absolute terms, stands out as the only top broker to add clients during this period, albeit modestly. Taken over the first five months of 2025, the group has seen net attrition, in contrast to the sharp expansion in 2024, signalling a cooling-off phase in user acquisition and platform stickiness.

Analysts suggest this dip may be short-lived. With a strong pipeline of upcoming new share sales in June, including big-ticket names, and robust grey market premiums (GMPs), retail investor interest appears to be reviving. The broader structural trend remains intact: technology-led discount brokers continue to dominate, using frictionless onboarding and low-cost models to consolidate market share. “Their user-friendly platforms and cost efficiency have drawn millions, especially first-time investors,” said the head of research at a Mumbai-based global investment management firm.

The declines seen in April and May are part of a broader cooling that began in early 2025. After ending December 2024 with over 5 crore active NSE clients, the base has steadily declined month after month. In FY24 (April 2024 to March 2025), the NSE’s active client base had grown 11.7 percent, from 4.36 crore to 4.87 crore, fuelled by bullish sentiment and digital penetration. The top five brokers accounted for over 65 percent of this base by March 2025. However, the trend reversed in the subsequent two months. By May 2025, the active client base declined to 4.69 crore, with the top four discount brokers shedding over 4.7 lakh clients combined.

This net decline of 3.6 percent in just two months follows a larger tapering-off in client additions after the market peak in late 2024. Market participants cite regulatory headwinds, including the Securities and Exchange Board of India's tightened norms on futures and options trading, and a dip in equity sentiment as key reasons for the pullback. “Regulatory pressures on F&O trading have led to a cautious approach among investors,” noted an industry source.

There are already signs of reversal in June. A wave of high-profile initial public offerings (IPOs) — including SMPP Ltd, Avanse Financial and NSDL — is driving a surge in GMPs and investor attention. The SME IPO segment is also buzzing, with offerings like Monolithisch India and Sacheerome.

Adding to the momentum is Groww’s anticipated IPO, which could value the brokerage between $6 billion and $8 billion, further strengthening its brand and possibly bringing new users into the ecosystem. “The IPO surge is a golden opportunity to attract new clients,” said a Mumbai-based trader.

While client additions are cyclical, the data clearly shows that discount brokers remain central to retail engagement in India’s equity markets. The next few months, led by IPO activity and evolving trading behaviour, could determine whether the recent client churn was a pause or the start of a more structural recalibration.

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