India's investing story is now in small towns: 84% of Groww users are outside top 6 cities
India's retail investing boom is increasingly being powered by smaller cities, with digital platforms expanding access far beyond the country's traditional financial hubs. Groww's FY26 Annual Report shows that 84% of its transacting users now come from outside India's top six cities, signalling a major shift in the geography of investing.
- Jul 31, 2026,
- Updated Jul 31, 2026 9:50 AM IST
India's retail investing boom is increasingly being driven by smaller cities rather than metropolitan centres, reflecting a structural shift in the country's investment landscape. As digital platforms make investing more accessible, Tier II and III cities are emerging as the next engines of growth for the mutual fund and stock market ecosystem.
According to Groww's FY26 Annual Report, 84% of its transacting users now come from outside India's top six cities, while customers are spread across 97% of the country's PIN codes. The data highlights how digital investing has expanded beyond traditional financial hubs to become a nationwide phenomenon.
Smaller cities lead
For decades, retail investing in India was largely concentrated in metros such as Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. Better financial awareness, easier access to brokers and higher disposable incomes made these cities the primary contributors to equity and mutual fund investments.
That trend is now changing. The rapid adoption of smartphones, affordable internet connectivity and digital investment platforms has significantly lowered the barriers to entry. Investors from smaller towns can now open accounts, invest in mutual funds, buy stocks and track portfolios entirely online, eliminating the need for physical branches or intermediaries.
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The report suggests this digital-first approach is helping democratise investing and bringing millions of first-time investors into the financial markets.
Broadening portfolios
The report also points to increasing financial maturity among retail investors. Nearly seven in ten active users now use more than one product on the platform, indicating that investors are expanding beyond a single investment option to build diversified portfolios.
This trend reflects growing awareness of different asset classes and a willingness among investors to explore a broader range of financial products instead of relying on a single avenue for wealth creation.
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Retail investing boom
Groww ended FY26 as India's largest retail broking platform, with 21.6 million total transacting users and 16.7 million active users, together holding ₹2,958 billion in customer assets.
Its mutual fund business also recorded strong growth, with 10 million active users, ₹1,570 billion in assets under management, 204.7 million SIPs processed, and ₹466 billion in SIP inflows during the year. The company said it accounted for 43% of all new SIPs registered in India in FY26, underlining the increasing popularity of disciplined investing among retail investors.
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Financial inclusion
The report also highlights broader participation across demographic groups. Nearly 64.7% of women investing through Groww are first-time investors, signalling that digital platforms are helping bring more women into India's investing ecosystem.
Looking ahead, CEO Lalit Keshre said Groww aims to evolve beyond a transactional platform by expanding its wealth management offerings and helping customers build long-term wealth.
The findings suggest that India's retail investing story is no longer centred on a handful of metropolitan cities. As digital access improves and financial awareness grows, investors from smaller towns are becoming a defining force in the country's capital markets, reshaping how and where wealth creation takes place.
India's retail investing boom is increasingly being driven by smaller cities rather than metropolitan centres, reflecting a structural shift in the country's investment landscape. As digital platforms make investing more accessible, Tier II and III cities are emerging as the next engines of growth for the mutual fund and stock market ecosystem.
According to Groww's FY26 Annual Report, 84% of its transacting users now come from outside India's top six cities, while customers are spread across 97% of the country's PIN codes. The data highlights how digital investing has expanded beyond traditional financial hubs to become a nationwide phenomenon.
Smaller cities lead
For decades, retail investing in India was largely concentrated in metros such as Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. Better financial awareness, easier access to brokers and higher disposable incomes made these cities the primary contributors to equity and mutual fund investments.
That trend is now changing. The rapid adoption of smartphones, affordable internet connectivity and digital investment platforms has significantly lowered the barriers to entry. Investors from smaller towns can now open accounts, invest in mutual funds, buy stocks and track portfolios entirely online, eliminating the need for physical branches or intermediaries.
MUST READ: Has the SIP story become too one-sided? Shankar Sharma questions India's equity investing boom
The report suggests this digital-first approach is helping democratise investing and bringing millions of first-time investors into the financial markets.
Broadening portfolios
The report also points to increasing financial maturity among retail investors. Nearly seven in ten active users now use more than one product on the platform, indicating that investors are expanding beyond a single investment option to build diversified portfolios.
This trend reflects growing awareness of different asset classes and a willingness among investors to explore a broader range of financial products instead of relying on a single avenue for wealth creation.
MUST READ: Indians spent Rs 65,000 crore more on gold in Q2 despite buying less. Here's why
Retail investing boom
Groww ended FY26 as India's largest retail broking platform, with 21.6 million total transacting users and 16.7 million active users, together holding ₹2,958 billion in customer assets.
Its mutual fund business also recorded strong growth, with 10 million active users, ₹1,570 billion in assets under management, 204.7 million SIPs processed, and ₹466 billion in SIP inflows during the year. The company said it accounted for 43% of all new SIPs registered in India in FY26, underlining the increasing popularity of disciplined investing among retail investors.
ALSO READ: NPS Vatsalya explained: Should parents invest for retirement or choose a mutual fund SIP?
Financial inclusion
The report also highlights broader participation across demographic groups. Nearly 64.7% of women investing through Groww are first-time investors, signalling that digital platforms are helping bring more women into India's investing ecosystem.
Looking ahead, CEO Lalit Keshre said Groww aims to evolve beyond a transactional platform by expanding its wealth management offerings and helping customers build long-term wealth.
The findings suggest that India's retail investing story is no longer centred on a handful of metropolitan cities. As digital access improves and financial awareness grows, investors from smaller towns are becoming a defining force in the country's capital markets, reshaping how and where wealth creation takes place.