Since 2020, India’s stock markets have witnessed an unprecedented wave of retail investor participation. Thanks to mobile trading apps, the rise of discount brokerage platforms, and the growing influence of social media, millions of small investors entered the market for the first time. However, the early months of 2025 show signs that this enthusiasm is cooling off.
In May 2025 alone, the four biggest discount brokers in India—Groww, Zerodha, Angel One, and Upstox—collectively lost 2.07 lkh active users. This followed a loss of 2.05 lkh clients in April, bringing the total decline to over 4.7 lakh users within just two months.
Among these, Zerodha suffered the most, with 76,000 clients exiting the platform. Zerodha's active client base now stands at 77.58 lakh. Angel One followed, losing 54,000 clients, bringing its base down to 74 lakh. Upstox experienced the steepest percentage fall, shedding nearly 47,000 users and ending up with just 26.6 lkh active users. Groww, on the other hand, showed more stability, losing only 2,000 clients, and still retains the largest user base at around 1 crore 28,000.
Interestingly, while these four major players are witnessing a dip in engagement, ICICI Securities gained 3,158 new clients in May. This growth is attributed to its full-service model linked with banking services—offering savings accounts, loans, insurance, and investment options all in one ecosystem. This signals a possible shift in investor preference from low-cost brokerage platforms to more integrated financial service providers.
Despite Groww continuing to hold the top position by client count, the pace of growth across platforms has clearly slowed. Upstox has been hit the hardest in terms of client losses, and the trend raises concerns over whether the retail investor momentum is fading.
One major reason for this decline is the market slowdown that began in early 2025. After a spectacular bull run in 2024, profits have become harder to come by, and retail investors seem to be pulling back. Regulatory changes have also made futures and options trading more restrictive, discouraging many smaller traders. Additionally, the lack of excitement in the IPO market in recent months has led to fewer new investors entering the market, as IPOs often serve as a gateway to stock investing.
Although demat account openings continue, many users are not trading actively. This points to a loss of enthusiasm rather than a complete exit from the market. According to NSE data, active users fell from 4.87 crore in March 2025 to 4.69 crore in May—a drop of 3.6% within just two months.
Experts believe that this dip may only be temporary. Several high-profile IPOs are expected to hit the market in June, which could reignite investor interest. Groww itself is also planning its IPO, which could further boost retail participation.
In conclusion, while the participation of retail investors has declined in early 2025, this seems to be more of a pause than a reversal. Discount brokers still dominate the trading ecosystem, and if IPO activity picks up and market conditions improve, we may soon see a return to record-breaking client growth.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Always consult with a certified financial advisor before making investment decisions.
