Zerodha Broking Ltd is an Indian financial services company. It is the first discount broking firm that offers retail and institutional broking, currencies and commodities trading, mutual funds, and bonds.
By the End of this article, you’ll know:
- How Zerodha Started?
- Success Story of Zerodha
- How the Kamath Brothers built the largest retail broker
- About Zerodha
- About the Founders of Company
How Zerodha Started
Zerodha started its Journey in 2010 with a team of five people. Zerodha derives from the words “Zero” and “Rodha”, the latter Sanskrit for Obstructions. The name Zerodha means “No Obstructions”
It was founded by the Kamath Brothers (Nithin Kamath and Nikhil Kamath) in 2010 with the aim to make trading barrier-free in the Stock Market. Founders aimed at providing a low brokerage trading platform. They targeted clients who are young and techier.
Zerodha is able to provide the Demat account with low brokerage because it is a discount brokerage firm. A discount brokerage firm is different from a full-service brokerage. Discount Brokerage firm doesn’t offer research services to its client, such as buy or sell recommendations. The cost saves by not having a full-fledged research team, it passes on to customers via a low brokerage.
Idea behind the Starting of Zerodha
The Idea behind the starting of Zerodha is the problem faced by the Nithin Kamath (Founder of Zerodha) to trade or invest in the Stock market and felt a need for such a platform where fees are low, paperwork is less and anyone invest their money in the Stock market easily by clicking some fingers on the Mobile phone. He has been trading since the age of 17 Years old. Then in 2010 Zerodha established.
Nithin and his brother Nikhil Kamath started operations by focusing on the intraday players in the market. Today the long-term investors are also included with the day traders in a huge proportion.
Success Story of Zerodha
Zerodha is India’s first discount brokerage firm. Now It also becomes the largest retail brokerage firm in India, with over 8.5 lakh active clients. The platform sees two to three million trades per day and It adds thousands of accounts every month. The numbers are increasing day by day.
New users are attracted to Zerodha because it is a discounted brokerage firm. Traders have to pay less brokerage than before. We Indians want everything discounted. It’s human nature and a smart move too because If you have to spend less money on the same task then humans can be attracted to discount one. Before Zerodha there are lots of paperwork, lots of charges (Opening charge, Account maintenance charge, Per trade charge, intraday charge, and many more). Zerodha solves these problems and today it is the market leader.
The Startup kicked off with a team of 5 members, which has now more than 1100 employees as per current data.
In June 2020, Zerodha becomes the unicorn startup and entered the unicorn club with a valuation of $1 Billion. This valuation was based on the ESOP buyback exercise the company undertook valuing each share at more than four times the book value of ₹700 per share. It entered into the unicorn club without approaching any investors, Zerodha bootstrapping their business from the beginning.
Nikhil Kamath Interview (The Ranveer Show)
Zerodha was founded in 15th August 2010 by Nithin Kamath and Nikhil Kamath (Kamath Brothers)
Zerodha is headquartered in Bangalore
Nithin Kamath is the Founder,CEO of Zerodha Discount broking firm.
Nithin Kamath is the Founder and CEO of Zerodha which was founded in 2010. He was named one of the “Top 10 Businessman to watch out in 2016 in India” by the Economic Times for pioneering and scaling discount broking in India
The Slogan/Tagline of Zerodha is “The Discount Brokerage”
Zerodha is absolutely safe because it is regulated by SEBI (Security Exchange Board of India)
Kamath Brothers founded the Company Zerodha in 2010. Today Nithin Kamath and Nikhil Kamath are the Richest self-made billionaires in India under the age of 40 Years