Zerodha

Zerodha Broking Limited is an Indian financial services company offering retail brokerage, currencies and commodities trading, mutual funds, and bonds. Founded in 2010,[5] the company is headquartered in Bangalore.[6][7]

Zerodha
Type of businessPrivate
Type of site
Electronic trading platform
FoundedAugust 15, 2010 (August 15, 2010)
Headquarters
Bangalore, Karnataka
,
India
Founder(s)Nithin Kamath
Nikhil Kamath[1]
IndustryStockbroker
ProductsKite, Coin, Console, Varsity
Services
Revenue ₹2,728.93 crore (US$360 million) (2021)[2]
Net income ₹1,122.31 crore (US$150 million) (2021)[2]
Employees1100+[3]
SubsidiariesZerodha Commodities Pvt. Ltd.
Zerodha Broking Ltd.
URLwww.zerodha.com
Users5 million+ (2021)[4]
Current statusActive

History

Zerodha was founded in 2010 by Nithin Kamath and Nikhil Kamath.[8] The name Zerodha is a portmanteau of words Zero and Rodha (Sanskrit word for barrier).[9]

In June 2020, Zerodha attained a self-assessed valuation of over $1 billion[10][11] based on ESOP buyback at more than four times the book value of ₹700 per share.[12][13]

With an active client base of 5 million users,[4] Zerodha is the largest retail stockbroker in India, contributing more than 15% of daily retail volumes across all Indian stock exchanges.[14]

Services

Delivery trades in equity are free of cost; however, for intraday trades of any size, a flat fee of ₹20 or 0.03% (whichever is lower) per executed order is charged across all segments (i.e., across NSE, BSE, MCX, NCDEX and currency).[15][16][17] A separate but wholly-owned entity, Zerodha Commodities, facilitates commodity trading for registered customers.[18]

Zerodha backs Rainmatter, an early-stage venture fund, which typically invests in technology-focused product companies. Some notable investments include Smallcase and ERPNext.[19][20]

Financial
Year Revenue (In crores) Profits/Loss (In crores)
FY 2020 938.4 424
FY 2021 2,729 1,122

Recognition

Zerodha won the BSE-Dun & Bradstreet Emerging Equity Broking House award in 2014 and 2015. Zerodha won the Bootstrap Champ award at the 2016 Economic Times Startup Awards,[21] and the NSE Retail Broker of the Year in 2018.[22] Two years later, Zerodha won Startup of the Year at the 2020 Economic Times Startup Awards.[23]

Criticism

Technical glitches and outages

There have been multiple reports of technical issues including glitches, system outages and connectivity problems on Zerodha's Kite platform, especially on days with high market volatility and F&O expiry days.[24][25][26][27]

In November 2020, LiveMint reported that some of Zerodha's traders complained of not being able to sign into its Kite platform due to a technical issue. Several users posted on Twitter to report log-in problem. Zerodha, in an official statement, acknowledged the issue.[28]

See also

References
  1. Srivastava, Samar (9 November 2020). "How Zerodha's young founders, Nithin and Nikhil Kamath, made their way to the Rich List". Forbes India. Archived from the original on 25 November 2020.
  2. Vardhan, Jai (16 February 2022). "Zerodha posts Rs 1,122 Cr profit in FY21; revenue past Rs 2,700 Cr". Entrackr.
  3. "30 Under 30: Nikhil Kamath - Chess to derivatives, all in a day's work". Forbes. Retrieved 21 September 2016.
  4. "Zerodha's profit more than doubled to Rs 1,000 crore in FY21, says Nithin Kamath". The Economic Times. 30 May 2021. Archived from the original on 3 June 2021.
  5. Baruah, Ayushman. "Zerodha Trade Winds of Change". BW Businessworld. Retrieved 26 January 2017.
  6. "Zerodha opens its Ahmedabad support center". The Economic Times. Retrieved 1 August 2013.
  7. Thomas, Tanya (4 January 2017). "Active accounts: discount brokers gain market share". The Hindu Business Line. Retrieved 12 August 2017.
  8. "How Zerodha's Young Founders, Kamath & Nikhil Kamat, Made Their Way To The Rich List". Forbes India. Retrieved 2 February 2021.
  9. "Our company, history, and the people behind it". Archived from the original on 29 January 2021. Retrieved 29 January 2021.
  10. "Zerodha valued itself at $1 billion, Hurun unicorn startups list bumps it up to $3 billion but founder says valuation doesn't matter". Business Insider. Retrieved 2 February 2021.
  11. "Zerodha becomes a unicorn during the 2020 Pandemic | StartUp Central". www.timesnownews.com. Retrieved 2 February 2021.
  12. Peermohamed, Alnoor; Manikandan, Ashwin. "Zerodha's Rs 60-65 crore Esops buyback plan values firm at $1 billion". The Economic Times. Retrieved 2 February 2021.
  13. "Zerodha Claims Unicorn Valuation In ESOPs Buyback Plan". Inc42 Media (in Latin). 22 June 2020. Retrieved 25 June 2020.
  14. "Zerodha replaces biggies as largest broker in India - Times of India". The Times of India. Retrieved 12 January 2019.
  15. "Here's how Zerodha became India's biggest stock brokerage - Times of India". The Times of India. Retrieved 24 August 2019.
  16. "Broking startup Zerodha to enter non-banking finance space and expand overseas". The Economic Times. 3 September 2015. Archived from the original on 5 March 2020. Retrieved 28 September 2015.
  17. "Average daily turnover surges in both F&O and cash segments; HNIs also get into the mix". Economic Times. 12 March 2015. Archived from the original on 5 March 2016. Retrieved 9 April 2015.
  18. "Zerodha commodities". Retrieved 24 July 2020.
  19. Bhakta, Pratik (14 November 2019). "Zerodha steps up as angel investor". Bangalore: India Times. Archived from the original on 26 June 2021.
  20. "Zerodha-backed Rainmatter invests Rs 10 crore in ERPNext". The Economic Times.
  21. "ET Startup Awards 2016: How the Bootstrap Champ Zerodha is taking investment to the masses". The Economic Times. 12 January 2016. Retrieved 19 January 2016.
  22. ""Zerodha – India's best retail brokerage for 2018" by NSE". Zerodha blog. 4 December 2018.
  23. "ET Startup Awards 2020: Zerodha leans on itself to thrive and shine". The Economic Times. 24 August 2020. Archived from the original on 11 March 2021.
  24. "Will Zerodha compensate investor losses caused by tech glitch?". Livemint. Retrieved 19 March 2020.
  25. "Zerodha server down due to connectivity issue, management clarifies". Moneycontrol. Retrieved 19 March 2020.
  26. "Unplugged, Zerodha not to depend on leased lines". Business Line. Retrieved 19 March 2020.
  27. "Zerodha's Kite platform faces technical issues". CNBC TV18. Retrieved 19 March 2020.
  28. Kaul, Abhinav (5 November 2020). "Some Zerodha traders peeved as Reliance Jio users face login issue". mint. Retrieved 3 December 2020.


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