- India's top brokerage firms are expanding into wealth management, insurance, lending, and asset management
- Groww leads with acquisitions in asset management and wealth-tech platforms to boost wealth business
- Motilal Oswal focuses on recurring revenue, with 61% of net revenue from recurring sources
India's largest listed and independent brokerage firms are expanding beyond trading and stockbroking into wealth management, insurance, lending, asset management and alternative investments as they seek more stable sources of revenue.
Groww, Motilal Oswal Financial Services, Angel One, 360 ONE WAM, Nuvama Wealth and Anand Rathi are building businesses that extend beyond traditional broking. The move comes as firms face regulatory changes, slower futures and options trading activity and pressure on pricing and customer acquisition.
The shift marks a broader change across India's brokerage industry. While broking remains the primary channel for acquiring customers, firms increasingly rely on fee income, interest income and wealth-related products to improve earnings visibility and reduce dependence on trading volumes.
"These (verticals) deliver recurring, fee-based revenue and deepen client lifetime values," said Roop Bhootra, whole-time director at Anand Rathi Share and Stock Brokers.
Wealth Push
Groww has moved furthest in broadening its business model. The Bengaluru-based company began as a mutual fund distributor in 2016 and later acquired Indiabulls Asset Management Co. in 2023. It also bought wealth-tech platform Fisdom to strengthen its private wealth business and launched an online bond platform.
In September 2025, Groww acquired Finwizard Technology Pvt. Ltd., expanding its presence in portfolio management services and insurance distribution.
"We launched commodities and bonds, scaled some of the existing products. Our assets (AUM) grew 2.5x in one-year," co-founder and Chief Executive Officer Lalit Keshre told investors. "Going forward, our focus will continue to be on scaling our Wealth (platform)."
Groww parent Billionbrains now commands a market capitalisation of nearly Rs 1.16 lakh crore, while Motilal Oswal Financial Services has a market value of about Rs 50,000 crore.
Motilal Oswal has also increased its focus on recurring revenue. According to company disclosures cited by Screener, annual recurring revenue contributes 61% of net revenue, while fee-based income accounts for 45% of total revenue.
The company recently received an AA+ credit rating with a stable outlook and has expanded businesses such as housing finance, private credit, wealth management and alternative investments.
"Wealth Management converts active traders into long-term investors. It captures SIP flows and creates AUM-linked revenues that smooths cyclical broking income," Bhootra said.
Expanding Services
360 ONE WAM has followed a different route, extending its wealth management franchise into brokerage services.
The company acquired Batlivala & Karani Securities, now known as 360 ONE Capital, for Rs 1,884 crore. The acquisition added institutional equity broking and strengthened its equity capital markets business. It also enabled the firm to combine research, advisory and execution capabilities under a broader platform.
The company also acquired UBS's onshore wealth management business in India, while UBS acquired a 4.95% stake in 360 ONE. With a market capitalisation of about Rs 40,000 crore, it is India's third-largest listed brokerage firm.
Angel One, valued at about Rs 31,000 crore, has expanded its asset management and wealth management businesses. The company entered a joint venture with Singapore-based LivWell to establish a digital-first life insurance business, where it will hold a 26% stake.
Angel One is also increasing its lending operations, including loan-against-securities products. Its wealth platform, Ionic Wealth, crossed $1 billion in assets under management in 2026 after launching in 2024.
Global Comparison
India's wealth management industry remains small compared with global peers.
In the United States, Charles Schwab oversees $11.59 trillion in client assets and serves 38 million active brokerage accounts. Morgan Stanley manages $9.3 trillion across wealth and investment management businesses, including E*TRADE. Merrill Lynch and Merrill Edge, within Bank of America's Global Wealth and Investment Management division, manage $4.5 trillion.
Robinhood, one of the newer entrants in the US market, serves 27.4 million customers and manages $314 billion in platform assets.
India's discount brokers have transformed the domestic brokerage industry over the past decade, helped by the growth of mobile internet and rising retail participation.
New Growth Engines
Anand Rathi has also expanded beyond its core broking operations. Its wealth management arm listed separately in 2021 and today commands a market capitalisation of about Rs 30,000 crore, compared with around Rs 3,400 crore for Anand Rathi Share and Stock Brokers.
The company has identified wealth management, alternatives, insurance distribution and margin trading facilities as key growth areas.
"Insurance distribution is low capex, fast to scale digitally, and addresses a large protection gap in urban India," Bhootra said.
He added that global investing remains another priority because it "provides retail users with seamless access to foreign equities".
Nuvama Wealth, backed by Hong Kong-based PAG, repositioned itself as a wealth-focused business following its separation from the Edelweiss Group.
The company serves family offices and operates a joint venture with Cushman & Wakefield. In the fourth quarter of FY26, wealth management contributed 57% of total revenue of Rs 825 crore.
Nuvama also operates offshore businesses in Hong Kong and the Dubai International Financial Centre. Alongside wealth management and alternatives, it has built a sizeable institutional equities business.
Industry Evolution
India's brokerage industry has undergone significant change over the past three decades.
The 1992 Harshad Mehta securities scam prompted regulatory reforms and strengthened the role of the Securities and Exchange Board of India. The National Stock Exchange was established in 1994, followed by the National Securities Depository Ltd. in 1996.
The next phase of growth emerged after 2016, when lower mobile data costs and wider internet access increased participation in financial markets. Demat accounts rose from 40 million in 2020 to more than 120 million by 2025.
"It outpaced global benchmarks, positioning India as the world's fastest-growing retail investment market," Mordor Intelligence said.
The Next Phase
Brokerage firms now see wealth management, credit, asset management and insurance distribution as their main growth drivers for FY27.
"It will be driven by the ability to partner customers across every stage of wealth creation," said Suresh Shukla, chief business officer, wealth management, at Motilal Oswal Financial Services.
"Wealth Management, along with Credit (margin facility), Asset (AMC/MF distribution), and Insurance Distribution are the priority growth areas for most players in FY27."
Shukla said brokerage firms "are evolving to comprehensive financial ecosystems."
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