India’s wealth mgt market to double, touch ₹2.6 lakh cr by FY30: Groww DRHP

India’s wealth management industry is on the cusp of a major expansion, according to the draft red herring prospectus (DRHP) filed by online brokerage platform Groww with the Sebi.

The total addressable market (TAM) for investment and wealth management sector stood at around ₹1.1 lakh crore as of March 2025 and is projected to grow at a CAGR of 15-17% between FY25 and FY30, reaching ₹2.2-2.6 lakh crore by FY30.

As per the IPO document, the growth is expected to be driven by the rising affluence of high-income and upper-middle-class households, greater retail investor awareness, easier access to capital markets, and increased adoption of professional advisory services.

“The market is expanding, driven by higher investor participation, growing disposable income and higher investible funds. The rise of digital-first platforms is democratising access to capital markets and empowering investors to build and manage their portfolios with simplified content, information and tools,” Groww said its DRHP report.

Online stock trading platform Groww filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on September 16, proposing to raise around ₹7,000 crore via the initial public offering (IPO) route. The public issue will be a combination of a fresh issue and an offer for sale by existing shareholders.

ARPU in retail wealth market to grow by 17%

The report noted that average revenue per user (ARPU) in the retail wealth market is projected to rise by 17%, from ₹15,900-17,200 in FY25 to ₹18,600-20,200 by FY30.

This will be supported by the adoption of multiple new products, bundling and cross-selling, and greater penetration of premium offerings. “As new users (entrants) in the investment & wealth management industry, over time begin to use multiple types of products and engage in more frequent transactions in their investing journey, the industry is expected to witness continued growth,” the report noted.

The DRHP also highlights how India’s IPO ecosystem has rapidly digitised, from physical forms to UPI-based ASBA (application supported by blocked amount) applications, which allow funds to be blocked instantly and cut listing timelines from T+6 to as low as T+3. In FY2025 alone, Indian companies raised over ₹4.26 lakh crore through equity, with NSE mobilising ₹18.68 lakh crore across 242 listings, the highest globally.

The data showed that the cash equity market saw a slight dip in individual participation with the number of NSE active clients declining from 38 million in June 2022 to 31 million in April 2023, driven by global uncertainties caused by the Russia-Ukraine war.

There was also a decline in the Indian capital market, with the NSE benchmark Nifty50 falling from 26,200 points from the end of September 2024 to 22,100 points by early March 2025, driven by various macro and geo-political factors such as the U.S.-China trade war, a hawkish monetary, policy by the U.S. Fed, and global oil price volatility due to conflicts in the middle-east.

“The net new additions in demat accounts for the industry in the three months ended June 30, 2025 falling to 6.67 million from 10.87 million in the three months ended June 30, 2024,” it showed.

Retail participation in cash market jumps 4x

However, the long-term trajectory remains strong, as individual investor participation in the cash market grew around 4x during FY20-25 with the number of active clients on NSE crossing 50 million in December 2024 for the first time ever. Individual investors accounted for more than 34% of the cash market turnover in FY25 on NSE.

One of the key drivers of this growth has been the broad-based rally in domestic stock markets, where the Nifty50 index grew at a CAGR of 11% between FY15 and FY25, outperforming other savings instruments such as fixed deposits, bonds etc. 

Further, overall trading volume on NSE has also witnessed strong growth – 9.68 billion trades in FY25, up from 1.83 billion in FY15, whereas individual investor turnover increased from ₹28 lakh crore in FY16 to ₹70 lakh crore in FY20 to ₹193 lakh crore in FY25, growing at a CAGR of 23.88% during the last ten years.

The derivatives segment also expanded, with individual participation rising from just 0.7 million in FY16 to 10.6 million in FY25. While F&O activity moderated in recent quarters due to regulatory interventions, analysts expect the space to evolve toward more sophisticated participation.

As per the report, increasing number of new to market investors, UPI integration, capital market literacy, along with growing wealth and higher allocation of savings to equities, is expected to drive continued growth in investing and trading in India.

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