Zerodha is a Stock Market Discount Broker, providing Equity, derivative, currency & commodity trading along with Direct Mutual Fund Investment.
Nikhil and Nitin Kamath founded the business in 2010, and it is based in Bangalore.
In ten years, Zerodha rose to a self-estimated valuation of over 29,700 crores.
It is the most quickly growing bootstrapped startup in India.
With 5 million users as clients, Zerodha is the No.1 Broker in India.
Over 15% of the daily retail volumes on all Indian Stock Exchanges are contributed by Zerodha.
Rainmatter is an Indian fintech startup founded by Zerodha which invested in several fintech startups with the goal of growing the Indian capital markets.
TIMELINE of ZERODHA –
Zerodha, which was launched on August 15, 2010, takes the lead in the discount broker model in India. They have reached the top because of their innovative offerings in support and technology.
They launched the ₹20 flat brokerage fee for intraday trade, which was the first time introduced in the Indian market.
By watching Zeroda’s discount model many new players enter & many full-time brokers convert their business into a discount brokers.
Their trade volume each day exceeds ₹10,000 crore. Most recently, during the fiscal year 2015–16, their income increased from INR 65 crore to INR 119 crore.
BUISNESS MODEL OF ZERODHA-
Low Margin and High Volume: Because Zerodha only charges a free or very small cost for transactions, there is typically a high volume of trading or exchange. For Zerodha, this fee collection of lesser sums from a greater number of clients results in good income creation.
There are 5 million active users overall. Fees per transaction (Intraday & F&O): Rs 20. 3 million trades on average every day.
Average operating daily income: roughly 60 million rupees.
Low Operating Costs: Thanks to its entirely online structure, Zerodha is able to maintain low operating costs. In order to keep its user interface (UI) user-friendly and draw new people to its platform, it also invests in its ongoing development.
CHALLENGES FACED BY ZERODHA-
Zerodha required numerous mass recruiting efforts due to its growth. They used a monthly hiring strategy and planned to provide several hires at various levels throughout the year.
A committed recruiting manager gives their best to the client for every company profile we tackle, and Zerodha was no exception. With more than 100 employees from Multi Recruit, their clever recruitment strategy contributed to the expansion of their 600-person staff base. They were sure to do prompt follow-ups on our hiring efforts to verify that the hires had been successful.
The excellent performance and cost-effective solutions helped Zerodha meet all of its workforce needs while overcoming its recruitment obstacles.
SERVICES BY ZERODHA-
- EQUITY TRADING- Buying and selling company shares on the stock markets with the goal of making money from the purchase or sale of these securities are referred to as equity trading. Primary market (IPO) and secondary markets are the two categories of equity markets (OTC).
- DERIVATIVES TRADING- A contract involving two or more parties and a derivative value based on an underlying asset is known as derivatives trading. Traders make predictions about the asset’s future price in order to acquire or sell it for expected profits from the price difference.
- CURRENCY TRADING- The buying and selling of currencies on the foreign exchange market with the aim of making profits are known as currency trading, often known as foreign exchange or Forex.
- COMMODITIES TRADING- A commodity market is a place where raw resources or basic goods can be bought, sold, or traded. Hard and soft commodities are two major categories into which commodities are frequently divided. Natural resources like gold, rubber, and oil are examples of hard commodities. In contrast, agricultural goods or cattle are examples of soft commodities.
- MUTUAL FUNDS- A mutual fund is a type of investment vehicle that enables several investors to pool their money and generate returns on their initial commitments over time. This collection of funds is managed by a professional investor known as a fund manager or portfolio manager.
- BONDS/G-SECS- Users can purchase and sell bonds via Zerodha’s platform, and interest income is tax-free.
COMPETITORS OF ZERODHA-
|SL. No.||Name of Stock Broker||No of Active Clients||Market Share (%)|
|1||ZERODHA BROKING LIMITED||66,04,055||18.34%|
|2||RKSV SECURITIES INDIA PRIVATE LIMITED (UPSTOX)||4261522||14.24|
|3||ANGEL BR0KING LIMITED||2861515||9.56|
|4||NEXTBILLION TECHNOLOGY PRIVATE LIMITED (GROWW)||2671173||8.93|
|5||ICICI SECURITIES LIMITED||2605215||8.70|
|6||5PAISA CAPITAL LIMITED||1336132||4.46|
|7||KOTAK SECURITIES LIMITED||1065692||3.56|
Financials of Zerodha
OUTCOMES AND FUTURE PLANS-
Future objectives for Zerodha include using the platform to attract 5–10 million new investors to their platform in upcoming quarters.
India is heavily reliant on foreign investment to power the economy. Any nation must have its citizens invest their money in the market for it to prosper. The money shouldn’t merely be invested in real estate and fixed deposits. In order to promote growth, I want to motivate people to further their education and invest financial resources into the ecosystem.Nikhil Kamath, Founder & CEO Zerodha
At the moment, Zerodha is working to make its cheap brokerage services more affordable. According to sources from September 1, 2021, the corporation would introduce low-cost funds to help it reach that goal.
In conclusion, the Founder has managed to compete with the companies like HDFC and ICICI for being on the top lists. Other rivals also include companies like Upstox, Groww, SAS Online, Angel Broking, and TradingBells. The founder wants to keep his low-margin approach consistent.
Additionally, this company came up with a plan to start offering Treasury notes, government securities, and sovereign gold bonds, all of which are in high demand when the markets are in a slump.
Nithin firmly feels that doing the right thing for a very long time is more important than chasing after money. Because of this, over the past eight to nine years, his company has grown to become one of the top brokerage firms in the nation.
Additionally, despite numerous obstacles, the company has persevered in steadily growing its clientele year after year. That concludes this post.
We hope that this Zerodha success story serves as motivation for all aspiring business owners and entrepreneurs who want to achieve great success in the stock market sector.
Stay safe and enjoy your investments.