Small-Town India Powers Retail Investing Boom as 84% of Groww Users Come From Beyond Major Cities

India’s retail investing landscape is undergoing a major transformation, with smaller towns emerging as the new growth centres. According to Groww’s FY26 Annual Report, 84% of its transacting users now come from outside India’s six largest cities, while customers are spread across 97% of the country’s PIN codes. The shift reflects how digital platforms, affordable internet access and smartphones have made investing more accessible, enabling millions of first-time investors to participate in equity and mutual fund markets.

The report also indicates that retail investors are becoming more financially aware and diversified in their investment approach. Nearly seven in ten active users now invest in more than one financial product, signalling a move beyond single investment options. Groww ended FY26 with 21.6 million transacting users, 16.7 million active users and customer assets worth ₹2.958 lakh crore. Its mutual fund business recorded 10 million active users, ₹1.57 lakh crore in assets under management and ₹466 billion in SIP inflows, accounting for 43% of all new SIP registrations in India during the year.

The report further highlights growing financial inclusion, particularly among women, with 64.7% of female investors on the platform identified as first-time investors. Groww CEO Lalit Keshre said the company plans to strengthen its wealth management offerings to support long-term financial growth for customers. The findings underscore a broader trend where India’s investment story is increasingly being shaped by Tier II and Tier III cities, expanding participation in the country’s capital markets beyond traditional financial hubs.

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