Angel Broking says over 80 per cent of its nearly 1 million new customers are under-30

Angel Broking, which crossed the 5-million customer base mark in May onboarding a record 0.43 million new demat accounts during the month, has said that over 80 per cent of its new customers are under 30 years of age, and 90 per cent of them are from small towns. On the back of a record over 56 per cent rally in stock prices in the second half of 2020 after the massive rout in the first half due to the pandemic, tens of millions have entered the equities market. This was reflected in the latest BSE data which shows investors on its platform crossed 70 million milestone earlier this month.
As of June 7, the BSE had 70 million registered users (based on the unique client code). The journey from 60 million to 70 million users took just 139 days, as against 241, 652 and 939 days it took for previous milestones of 60 million, 50 million and 40 million, respectively, the BSE said.

Digital-focused Angel Broking, which went public with a Rs 600-crore IPO last September, closed 2020-21 with 4.12 million customers, up from just 1.82 million in FY19, its Chief Growth Officer Prabhakar Tiwari said.

He added that June has also been keeping pace with the previous two months, but refused to commit a client addition number for the full year.

This means that the brokerage has added 0.88 million customers in April and May, with May being the highest grossing up 0.43 million new accounts -- this was over twice the monthly average in the past financial year, he said.

Its quarter-on-quarter customer addition rate has been growing by over 14 times to 0.96 million in the fourth quarter of FY21, from less than 0.10 million in the first quarter of FY20.

It has also reached a record average daily turnover of Rs 4.8 lakh crore, which is nearly 19 times compared to Rs 25,300 crore in the first quarter of 2020, Tiwari said.

He attributed this to the increased focus on leveraging artificial intelligence and machine learning.

"As much as 80 per cent of our new clients are under 30 years and of them, a whopping 90 per cent are from small towns. This shows how we made in-roads to tier-2 and -3 towns from where millennials and Gen-Z individuals are joining our platform," Tiwari told .

This is also supported by BSE numbers. Of the 70 million BSE users, as much as 38 per cent are in the 30-40 age bracket, followed by 24 per cent in 20-30, and 13 per cent in the 40-50 age brackets.

Our growth was fuelled by tech-savvy young users, with an age profile of 20-40, who contributed 0.82 million of the 10 million user additions from 60 million to 70 million, BSE Managing Director and Chief Executive Ashishkumar Chauhan has said.

On how many of new customers are active, he said only around 0.17 million of the five million are active.

On the rising interest in the market from small towns, Tiwari said realty and gold are not really doing well now as in the past and also the flurry of successful IPOs has been wooing new investors.

The 25-year Angel Broking reported 230 per cent surge in net income for the March 2021 quarter at Rs 102 crore over Rs 31 crore in Q4 of FY20. For the full year, net profit jumped 260.5 per cent to Rs 296.9 crore from Rs 82.35 crore in FY20, on an income of Rs 1,299 crore, which was up 72.1 per cent from FY20.