Nithin Kamath, a 40-year-old man dressed casually in a t-shirt and trousers, tells the story of how he went bankrupt two decades ago with a sheepish grin. In the year 2001, he had spent all of the money he’d borrowed from family and friends to trade futures and options.
“It was…quite awful. I had to take work at a contact center in Bengaluru, India because my salary was less than 2 lakhs “He claims to be amused even now.
He can smile today since he’s in a better mood. One of the founders of India’s largest online stock brokerage, Zerodha, is Kamath, whose brother Nikhil also went through a roller coaster ride.
Since it has 5.7 million retail clients, Zerodha accounts for 15% of all retail trading, and last fiscal produced revenue and profit in excess of 2.5 billion.
Founder of Zerodha and Nithin Kamath noticed a huge increase in wealth in the recent year. Last year, the net worth of Kamath’s family increased by 51% to Rs 25,600 crore, according to the IIFL Wealth Hurun India Rich List 2021.
On the list of the richest Indians, Kamath and his family take the 63rd spot. In terms of net worth, Kamath’s younger brother, Nikhil, is worth somewhere in the neighborhood of Rs 11,000.
The sheer amount of trades conducted through Zerodha makes it one of India’s largest stock trading firms. During the pandemic, a record number of investors established trading accounts on Zerodha.
Zerodha Kite: In India, the greatest trading platform for active traders is Zerodha Kite. Zerodha kite online and mobile are available for Android and iOS. A trading tool that allows you to code, scan, and backtests your trading strategy before putting it into practice in the stock market.
Zerodha Varsity: There are a variety of topics covered in Zerodha Varsity’s courses, including how to read a balance sheet, how to trade options, and how to locate the best stocks to trade in pairs, and various approaches to trading and managing money.
Zerodha Coin: One of India’s first direct investing mutual fund products offered by stock brokers, Zerodha Coin allows you to save up to 28 lacs in 25 years. Mutual funds can be purchased commission-free and sent directly to your Demat account using this offering.
Zerodha Kite Connect API: With the Zerodha Kite Connect API, you can build your own trading platform and conduct transactions directly from it, making it the first of its kind in India. It uses basic HTTP/JSON APIs to construct robust trading systems and experiences. In the event that you’re a startup, create an investment app and display it to our customers.
Zerodha Sentinel: In addition to stock, futures, and option notifications, Zerodha Sentinel provides free cloud-based market alerts.
Revival of the ZERODHA MARKET
The company’s revenue follows next after the Zerodha Valuation. Zerodha, an online stock trading platform established in Bangalore, has the most customers.
Traditional titans like HDFC Securities, ICICI Direct, Motilal Oswal, Sharekhan, and Kotak Securities have been dethroned by this newcomer to the market. The Zerodha platform records almost 2 million deals every day on average (a huge contributor to Zerodha valuation).
In addition, the firm was named the best retail brokerage firm in 2018 by the Wall Street Journal (in India ). Zerodha’s special discount approach, where stock trades are free, is to thank for this progress.
Transaction fees are the primary source of income for Zerodha. Futures, options, and intraday trading transactions are all subject to a maximum cost of 20.
The ZERODHA REVENUE MODEL.
Doesn’t it seem that a company’s mantra is essential to the success of the business? Zerodha, on the other hand, employs a business model that directly influences revenue. Zerodha’s revenue model has been valued at this amount.
The large trading volume at Zerodha can be attributed to the low transaction fees the company charges. A lot of customers means a lot of revenue, which is why a high volume is so important.
In addition, the low operating costs are a major factor in the high number of visitors. Low operating costs are made possible by Zerodha’s web-based framework.
Thus, Zerodha’s income strategy is “discount broking,” in which it charges a minimal commission for services rendered. This is enticing to investors in general, but new ones in particular.
This model is unquestionably the reason for its loyal customer base (more than 1 million). Stock market investments were too expensive in 2010. Furthermore, not everyone was able to do so on the same terms.
Because Zerodha was founded in 2010 with a low-cost brokerage option, it had the benefit of being the first to market. In India, a discount brokerage firm has never existed before.