zerodha case study by financeupmedia
Zerodha is a Bangalore-based fintech startup that has revolutionized the stock brokerage industry in India. Founded in 2010 by Nithin Kamath and Nikhil Kamath, Zerodha has quickly become the country’s largest stock broker in terms of the number of active retail clients.
The company’s success can be attributed to its innovative approach to trading, which emphasizes transparency, low fees, and cutting-edge technology. Zerodha was one of the first brokers in India to introduce online trading, and its platform has been praised for its user-friendliness and robust features.
Moreover, Zerodha has played a pivotal role in the democratization of the Indian stock market, by enabling retail investors to trade in stocks and other financial instruments with ease. This has contributed to the rise of a new generation of investors, who are more empowered and informed than ever before.
Overall, Zerodha’s story is a testament to the power of disruptive innovation in finance, and its impact on the way people invest and trade in India.
Zerodha – Company Highlights
|Headquarters||Bengaluru, Karnataka, India|
|Industry||Finance, Stock Exchange|
|Founders||Nithin Kamath, Nikhil Kamath|
|Revenue||$606.91 million (Rs 4,964 crore in FY22)|
|Profit||$255.98 million (Rs 2,094 crores in FY21)|
Zerodha – Logo and Tagline
The tagline of Zerodha is ‘The Free Trade Zone‘. It conveys the brand’s primary differentiator of brokerage-free trading in a clever fashion.
Zerodha is a fintech startup based in Bangalore, India that provides online trading services in stocks, commodities, currencies, and other financial instruments. The company was founded in 2010 by Nithin Kamath and Nikhil Kamath, who had a vision to make trading affordable and accessible to everyone.
Zerodha’s platform offers a variety of trading tools and features, including a mobile trading app, charting tools, and real-time market data. The company has also introduced several innovative products, such as Zerodha Coin, which is a platform for investing in mutual funds, and Zerodha Varsity, which is an online education platform for learning about finance and investing.
One of Zerodha’s key strengths is its focus on transparency and low fees. The company charges zero brokerage fees for equity investments and a flat fee of Rs. 20 per trade for other instruments. This has made trading more affordable for retail investors and has helped to democratize the Indian stock market.
Zerodha’s success has been recognized with several awards, including the NSE-CNBC TV18 Award for Best Retail Broker in 2017 and the Economic Times Award for Best Online Trading Platform in 2018. As of 2021, Zerodha has over 5 million clients and is the largest stock broker in India in terms of the number of active retail clients.
Zerodha – Founders
Nithin Kamath is the co-founder and CEO of Zerodha, one of the leading fintech companies in India. He was born in 1978 in Bangalore, and his passion for trading started at a young age when he would accompany his father, who was a stockbroker, to the stock exchange.
Nithin Kamath dropped out of college to pursue a career in trading and started his career as a sub-broker in 2000. After gaining experience and expertise in the field, he co-founded Zerodha in 2010, with a vision to make trading more affordable and accessible to everyone.
Under Nithin Kamath’s leadership, Zerodha has grown exponentially and has become the largest stockbroker in India in terms of the number of active retail clients. He is known for his innovative approach to trading and his emphasis on transparency and low fees. Nithin Kamath is also a vocal advocate for financial literacy and has launched several initiatives to educate people about investing.
Nithin Kamath has been recognized for his contributions to the fintech industry with several awards, including the Entrepreneur of the Year award at the Economic Times Awards for Corporate Excellence in 2020. He is also an active investor and has invested in several startups in India.
Nikhil Kamath is the co-founder of Zerodha, a leading fintech company in India that provides online trading services. Nikhil Kamath was born in Bangalore, India, in 1986 and grew up in a family that had a background in stock trading.
He began his career as a full-time trader in 2008, and in 2010, he co-founded Zerodha with his brother Nithin Kamath. Together, they set out to create a brokerage firm that would make trading accessible to everyone, regardless of their level of expertise or financial resources.
Under Nikhil Kamath’s leadership, Zerodha has grown to become the largest stockbroker in India in terms of the number of active retail clients. He is known for his innovative approach to trading and his focus on technology, which has helped Zerodha to offer cutting-edge trading tools and features.
Apart from his role at Zerodha, Nikhil Kamath is also an active investor and has invested in several startups in India. He is also a well-known chess player and has won several national and international tournaments.
Nikhil Kamath’s contributions to the fintech industry have been recognized with several awards, including the Entrepreneur of the Year award at the Economic Times Awards for Corporate Excellence in 2020. He is also a strong advocate for financial literacy and has launched several initiatives to educate people about investing.
The rise of zerodha
|2010||Launched India’s first discount stockbroking platform.|
|2013||Built a tech product to enable people to buy & sell stocks on a more user-friendly platform.|
|2014||Launched Zerodha Varsity An initiative to educate people about trading & investing in capital markets.|
|FEB 2015||Launche Rainmatter An Indian Fintech fund & Incubator|
|SEPT 2015||Launched Kite A new age online trading platform.|
|DEC 2015||Launched Kite.Trade API revolutionizing the trading ecosystem in India.|
|SEPT 2016||Crosses over 1 lac active clients.|
|MAR 2017||Launched Coin Mutual fund investing platform.|
|JAN 2019||Became India’s largest stockbroker.|
|JUNE2019||Crosses 10 lac active clients.|
|MAR 2020||Zerodha records revenues of Rs 1100 Cr. & profits of Rs 430 Cr.|
|APRIL 2020||Executed the largest number of trades in a single day at 7 million trades a day.|
|JUNE 2020||Conservatively valued itself at $1 billion & issued ESOP buyback worth Rs 65 Cr. to its 700 employees.|
|AUG 2020||Won ET Startup of the Year 2020 Award for being one of the few profitable bootstrapped startups in the country|
Zerodha – Vision and Mission
Zerodha is firmly committed to working towards our vision of creating a brokerage-free world to benefit the most important stakeholders when it comes to the financial markets.
Zerodha – Business Model and Revenue Model
Zerodha’s business model is based on a ‘Low margin and high-volume’ approach, which allows the company to charge traders minimal fees for transactions. This model has resulted in a high trading volume and a large number of clients, which in turn generates good revenue for Zerodha. Moreover, Zerodha’s online structure has significantly reduced its operational costs, allowing the company to maintain high-profit margins compared to traditional brokers.
Recently, Zerodha received approval from the SEBI to offer mutual fund services, marking another milestone for the company. Co-founder Nithin Kamath announced the news on his Twitter handle, stating that Zerodha had applied for the license in February 2021. This approval will enable Zerodha to launch its asset management company (AMC) and further diversify its revenue streams.
Zerodha – Growth
Zerodha has experienced significant growth since its inception in 2010. The company’s innovative approach to trading and its focus on technology has helped it to attract a large number of retail investors in India.
One of the key factors driving Zerodha’s growth has been its low fee structure. The company offers commission-free equity investments and charges a flat fee of Rs. 20 per trade for other instruments, such as futures, options, and currencies. This has made trading more affordable and accessible for retail investors and has helped Zerodha to gain a large market share in the Indian brokerage industry.
Zerodha has also invested heavily in technology, offering cutting-edge trading tools and platforms that have helped it to stand out from traditional brokers. The company’s online structure has significantly reduced its operational costs, allowing it to offer low fees while maintaining high-profit margins.
Another factor driving Zerodha’s growth has been its focus on customer service. The company has established a strong reputation for providing excellent customer service and has invested in training its employees to provide personalized support to its clients.
Zerodha’s growth has been reflected in its financial performance. The company reported revenue of Rs. 1,093 crore in FY2020 and has been consistently profitable since 2012. As of 2021, Zerodha has more than 6 million clients and has become the largest stockbroker in India in terms of the number of active retail clients.
Looking ahead, Zerodha is expected to continue its growth trajectory by expanding its product offerings and diversifying its revenue streams. The recent approval from the SEBI to offer mutual fund services is a significant milestone for the company and is expected to drive further growth in the coming years.
Zerodha – Competitors
Zerodha operates in a highly competitive market and faces tough competition from both discount brokers, such as Upstox, and full-service brokers, including popular names like HDFC Securities, Kotak Securities, and Motilal Oswal. Despite this competition, Zerodha has managed to establish itself as a leader in the Indian brokerage industry through its innovative approach to trading and focus on customer service.
Zerodha – Future Plans
Zerodha’s upcoming goal is to encourage 5-10 million new investors to participate in the Indian stock market through its platform. According to Nithin Kamath, Zerodha’s co-founder, India needs its residents to invest in the market rather than just relying on foreign capital or keeping money in fixed deposits and real estate. Nithin aims to promote financial education among people and encourage them to invest in the ecosystem to drive growth and prosperity for the country.
1. What is the monthly fee of Zerodha?
₹100 per order for futures and options. For a non-PIS account, 0.5% or ₹100 per executed order for equity (whichever is lower). For a PIS account, 0.5% or ₹200 per executed order for equity (whichever is lower). ₹500 + GST as yearly account maintenance charges (AMC) charges.
2. Is Zerodha costly?
Is Zerodha really free? Zerodha offers truly brokerage free equity delivery trading and Mutual Fund investment. But it charges flat Rs 20 or 0.03% (whichever is lower) per executed order brokerage fee for trading in Intraday and F&O across Equity, Currency and Commodity segments.
3. Is Zerodha good for beginners?
suitable for beginners for a number of factors. Some of them are listed below. If you are beginning your investment journey or opening a Demat account for the first time then Zerodha is a preferred option.
4. Can I have 2 demat accounts?
It is absolutely legal to open multiple Demat accounts. However, it is allowed to open multiple Demat accounts with the same brokerage firm. Investors need to fulfil all KYC requirements every time they open a new Demat account.
5. Is Zerodha trustworthy?
Is Zerodha legit? Yes, Zerodha is a legitimate stock brokerage firm in India. It is registered with SEBI, CDSL and all major stock exchanges in India.