Trading war: Evolving landscape of discount brokerage in India

Abstract

The case study chronicles the evolution of Trading Tech sector in India, focusing on the emergence of the digital discount brokerage model. The case delves into the brokerage industry disruption in India, comprising primarily of Industry 4.0-based technological advancements, regulatory policies, and consumer demand shifts. India, a developing economy that was largely characterized by traditional modes of financial transactions, brokerage, and wealth management, shifting to predominantly digital modes with the advent of technology, makes an interesting context. This case sheds light on Zerodha and Groww, India’s biggest online discount brokerage companies, their background, and business model evolution. We intend to make the readers aware of the industry dynamics, the specific business model of the two leading brokerage firms in India, and their challenges. The readers can use various strategy and innovation frameworks to evaluate the strategic choices and business models adopted by the firms and the strategic challenges that need to be addressed to achieve sustained advantage in the financial services market.