Groww sees long run opportunity in MTF, expects steady expansion in new businesses: Ishan Bansal

Groww expects strong long-term growth in its margin trading facility (MTF) business and sees a steady shift in its revenue mix as newer verticals scale up, Co-founder and CFO Ishan Bansal said. Speaking about the rapid rise in MTF adoption, Bansal said the company is still in the early stages of building the product.

MTF assets have climbed from ₹389 crore in second quarter last year to about ₹1,700 crore now. Bansal said, “We’ve been adding roughly ₹400 crore to ₹600 crore every quarter,” and noted that only around 80,000 customers use MTF today. He believes the product has room to expand, saying, “We are just 1-1.5% of this market… in the longer run we can reach a double-digit number.”

On the company’s broader growth outlook, Bansal reiterated that Groww is targeting 20-30% revenue growth over the long term, though he stressed that capital-market-linked businesses will naturally see ups and downs. The contribution of derivatives to revenue has already dropped—from the late-60% range earlier to the late-50s now—and Bansal expects this share to fall further as MTF and other products grow.

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He said the shift in customer behaviour is also visible in the way new users enter the platform. The proportion of customers whose first interaction with Groww is through systematic investment plans (SIPs) has risen from 29% last year to 36% now. SIPs, he said, help users start investing with discipline and often lead them to try additional products later. “Within two to three years, more than 50% of customers start using a second product,” he said.

This multi-product adoption helps improve long-term customer value and keeps acquisition economics stable. Bansal said the company tracks payback periods rather than lifetime value, targeting four to six months. Present payback is closer to six months due to weaker market conditions.

On user growth, Bansal said Groww has managed around 20% growth even in a soft market, and expects 15-20% user growth in the near term if conditions remain unchanged. Revenue growth for 2025-26 (FY26) is expected to turn positive despite a 10% decline in the first half of the year. He noted that two regulatory changes—one affecting derivatives and another on two-factor authentication—temporarily impacted performance, but said momentum should improve in the coming quarters.

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Bansal also addressed concerns around trader losses. Only 0.3% of Groww customers trade exclusively in derivatives, he said, and while this narrow cohort shows loss patterns similar to industry studies, most customers use multiple products, helping their overall wealth creation.

On customer returns, Bansal said outcomes vary by market conditions but noted that users had collectively generated ₹60,000-70,000 crore in gains at one point, with the figure likely higher now.

For the full interview, watch the accompanying video

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