Zerodha

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Zerodha
Zerodha logo.svg
Type of businessPrivate
Type of site
Electronic trading platform
FoundedAugust 15, 2010; 11 years ago (August 15, 2010)
Headquarters
Bangalore, Karnataka
,
India
Founder(s)Nithin Kamath
Nikhil Kamath[1]
IndustryStockbroker
ProductsKite, Coin, Console, Varsity
Services
  • Equity trading
  • Derivatives trading
  • Currency trading
  • Commodity trading
  • Mutual funds
  • Bonds
  • Government bond
RevenueIncrease ₹1,093.64 crore (US$150 million) (2020)[2]
Net incomeIncrease ₹442.36 crore (US$59 million) (2020)[2]
Employees1100+[3]
SubsidiariesZerodha Commodities Pvt. Ltd, Zerodha Broking Ltd
URLwww.zerodha.com
Users5 million+ (2021)[4]
Current statusActive

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]

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]

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. ^ a b Vardhan, Jai (26 February 2021). "Zerodha's revenue grows to Rs 1,094 Cr in FY20 with Rs 442.36 Cr profit". Entrackr. Archived from the original on 27 February 2021.
  3. ^ "30 Under 30: Nikhil Kamath - Chess to derivatives, all in a day's work". Forbes. Retrieved 21 September 2016.
  4. ^ a b "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.


External links[]

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