Zerodha

Zerodha Broking Ltd. is an Indian financial services company (a member of NSE, BSE, MCX),[4][5] that offers retail and institutional broking, currencies and commodities trading, mutual funds, and bonds. Founded in 2010,[6] the company is headquartered in Bengaluru and has physical presence in several major Indian cities.[7][8][9]

Zerodha Broking Ltd.
Type of site
Private
Founded2010 August (2010 August)
Headquarters
Bangalore, Karnataka
,
India
Founder(s)Nithin Kamath, Nikhil Kamath[1]
IndustryStockbroker
ProductsKite, Coin, Console, Varsity
ServicesEquity trading,
Derivatives trading,
Currency trading,
Commodity trading ,
Mutual funds
Employees1100+[2]
SubsidiariesZerodha Commodities Pvt. Ltd.
URLzerodha.com
Users4 million[3]

As of Dec 2020, Zerodha was the largest retail stockbroker in India by active client base, and contributes upwards of 15% of daily retail volumes across Indian stock exchanges.[10]

In June 2020, Zerodha entered the unicorn club with a self-assessed valuation of about $1 billion.[11][12] This valuation was based on the ESOP buyback exercise the company undertook valuing each share at more than four times of the book value of ₹700 per share.[13][14]

History

Zerodha was founded on 15 August 2010 by brothers, Nithin Kamath and Nikhil Kamath.[15] The name Zerodha is a portmanteau of words Zero and Rodha (Sanskrit word for barrier).[16]

Business model

A flat fee of a maximum of ₹20 is applied to trade, irrespective of its size, and it offers an array of purpose-built trading applications to its retail customers.[17][18][19]

Corporate affairs

Zerodha has a client base of 4 million users as of December 2020.[3] The company offers commodities trading via its wholly owned subsidiary, Zerodha Commodities Pvt. Ltd.[20]

Zerodha won the Economic Times Startup Awards 2016 in the Bootstrap Champ category.[21] The company also won the BSE-D&B Emerging Equity Broking House award in 2014 and 2015, and the NSE Retail Broker of the Year in 2018.[22]

Rainmatter

Founded in 2014, Rainmatter was founded as an early-stage fund with a corpus of ₹50 Crore.[23] By keeping the ticket size lower than $1 Million per investment, the fund has focused on minimizing risk but focus on funding start-ups in the field of new technology and new product development. Some notable investments of Rainmatter are in start-ups like [[, Finception, Smallcase and Sensibull.[24][25][26]

True Beacon and Mutual Fund AMC

In 2019, Zerodha started True Beacon,[27] the Alternative Investment Fund focused on giving returns in volatile markets through their defensive investment strategy. The $2 Million minimum investment fund has been able to generate a return in excess of 13% in its first year. In 2020, Zerodha has applied for a license to establish a Mutual Fund AMC in India.[24][28][29]

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.[30][31][32][33]

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 took to twitter to report log-in problem. Zerodha, in an official statement, admitted the same.[34]

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. "30 Under 30: Nikhil Kamath - Chess to derivatives, all in a day's work". Forbes. Retrieved 21 September 2016.
  3. Inamdar, Tamanna (10 December 2020). "Don't call our first-time investors Robinhoods: Nithin Kamath". The Economic Times. Archived from the original on 5 February 2021.
  4. Barbora, Lisa Pallavi (12 April 2013). "Advantage customers: providers shift focus". Mint. HT Media. Retrieved 11 April 2015.
  5. "Bengaluru broking firm Zerodha scraps fee for cash trades; rivals miffed by move". The Economic Times. 2 December 2015. Retrieved 2 December 2015.
  6. Baruah, Ayushman. "Zerodha Trade Winds of Change". BW Businessworld. Retrieved 26 January 2017.
  7. "Zerodha opens its Ahmedabad support center". The Economic Times. Retrieved 1 August 2013.
  8. Thomas, Tanya (4 January 2017). "Active accounts: discount brokers gain market share". The Hindu Business Line. Retrieved 12 August 2017.
  9. "Technology helps us unleash innovation in the capital markets: Zerodha CTO Kailash Nadh". Economic Times. 3 April 2018. Retrieved 11 August 2018.
  10. "Zerodha replaces biggies as largest broker in India - Times of India". The Times of India. Retrieved 12 January 2019.
  11. "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.
  12. "Zerodha becomes a unicorn during the 2020 Pandemic | StartUp Central". www.timesnownews.com. Retrieved 2 February 2021.
  13. 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.
  14. "Zerodha Claims Unicorn Valuation In ESOPs Buyback Plan". Inc42 Media (in Latin). 22 June 2020. Retrieved 25 June 2020.
  15. "How Zerodha's Young Founders, Nithin And Nikhil Kamath, Made Their Way To The Rich List". Forbes India. Retrieved 2 February 2021.
  16. "Our company, history, and the people behind it". Archived from the original on 29 January 2021. Retrieved 29 January 2021.
  17. "Here's how Zerodha became India's biggest stock brokerage - Times of India". The Times of India. Retrieved 24 August 2019.
  18. "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.
  19. "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.
  20. "Zerodha commodities". Retrieved 24 July 2020.
  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. Bhakta, Pratik. "Zerodha steps up as angel investor". The Economic Times. Retrieved 2 February 2021.
  24. Kamath, Shashank (17 June 2020). "Zerodha: More than a discount-broking company". A Word To The World. Retrieved 22 June 2020.
  25. www.ETtech.com. "Zerodha's Rainmatter invests Rs 4 crore in Finception - ETtech". ETtech.com. Retrieved 22 June 2020.
  26. Bhakta, Pratik (14 November 2019). "Zerodha steps up as angel investor". The Economic Times. Retrieved 22 June 2020.
  27. "Our new venture beat Nifty by 25% against 8% aimed: Nikhil Kamath of True Beacon & Zerodha". www.businesstoday.in. Retrieved 2 February 2021.
  28. "Zerodha applies for mutual fund license". The Economic Times. 20 February 2020. Retrieved 22 June 2020.
  29. "Amidst Dismal Market Performance True Beacon's Impressive Debut". The Week. Retrieved 22 June 2020.
  30. "Will Zerodha compensate investor losses caused by tech glitch?". Livemint. Retrieved 19 March 2020.
  31. "Zerodha server down due to connectivity issue, management clarifies". Moneycontrol. Retrieved 19 March 2020.
  32. "Unplugged, Zerodha not to depend on leased lines". Business Line. Retrieved 19 March 2020.
  33. "Zerodha's Kite platform faces technical issues". CNBC TV18. Retrieved 19 March 2020.
  34. 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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