Zerodha

Last updated

Zerodha Broking Ltd.
Industry Financial services
FoundedAugust 2010
FounderNithin Kamath & Nikhil Kamath
Headquarters India,
Bangalore
Services
Subsidiaries Zerodha Commodities Pvt. Ltd.
Website https://zerodha.com/

Zerodha Broking Ltd. is an Indian financial services company (member of NSE, BSE, MCX, MCX-SX), [1] [2] offering institutional and retail brokerage, currency and commodity trading, mutual funds and bonds. Founded in 2010, [3] the company is headquartered in Bengaluru and has a physical presence in many major Indian cities. [4] [5] [6]

Contents

History

The company was founded in August 2010 by two brothers Nithin and Nikhil Kamath. The company's name Zerodha, indicates a combination of words for the company's ideals: Zero and "Rodha", the Sanskrit word for "barrier". [7]

As of 2019, Zerodha was the largest retail stock broker in India by active client base and contributes up to 2% of daily retail volumes on Indian stock exchanges. [8]

Zerodha is also an investor in Kofluence, an AI-driven adtech influencer marketing platform. The company had raised pre-series funding of $4 million as of February 8, 2022 [9]

In June 2020, Zerodha entered the "unicorn club" with a self-valuation of around $1 billion. This valuation was based on the ESOP buyback exercise that the company undertook by valuing each share at more than four times the book value of ₹700 per share. [10]

In March 2024, Zerodha reached its fund house to ₹1,000 Crore AUM. [11] [12]

Society

A fixed commission of up to ₹20 is applied to a transaction, regardless of its size, and offers its retail clients a host of purpose-built trading applications. [8]

Zerodha has a base of more than 12 lakh [13] (1.2 million) of active customers. [14] [15] The company also offers commodity trading through its wholly owned subsidiary, Zerodha Commodities Pvt. Ltd. [16]

It won the "Economic Times Startup Awards 2016" in the "Bootstrap Champ". [17] 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" award in 2018. [18]

Rainmatter

In 2014, Rainmatter was founded as an early-stage fund with a corpus of ₹50 Crore (Rs500 million). By keeping the ticket size under $1 million per investment, the fund focused on reducing risk but focused on financing start-ups in new technology and new product development. Some notable investments by Rainmatter are in startups such as Cred, Finception, Smallcase, and Sensibull. [19] [20] [21]

True Beacon and AMC Mutual Fund

In 2019, Zerodha started True Beacon, the Alternative Investment Fund focused on providing returns in volatile markets through their defensive investment strategy. The $2 million minimum investment fund was able to generate a return of more than 13% in its first year. In 2020, Zerodha applied for a license to set up an AMC mutual fund in India. [19] [22] [23]

Technical problems and interruptions

There have been multiple reports of technical issues including glitches, system outages and connectivity issues 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 Zerodha traders complained of being unable to access its Kite platform due to a technical issue. Several users took to Twitter to report a login issue. Zerodha, in an official statement, admitted the problem. [28]

Note

  1. ↑ Barbora, Lisa Pallavi (12 April 2013). "Advantage customers: providers shift focus". LiveMint. Retrieved 23 March 2024.
  2. ↑ "Bengaluru broking firm Zerodha scraps fee for cash trades; rivals miffed by move". The Economic Times. 2 December 2015.
  3. ↑ Baruah, Ayushman (25 October 2016). "Zerodha Trade Winds of Change". Business World India. Archived from the original on 27 October 2016. Retrieved 23 March 2024.{{cite news}}: CS1 maint: unfit URL (link)
  4. ↑ "Zerodha opens its Ahmedabad support center". The Economic Times . 30 May 2013. Archived from the original on 30 July 2013. Retrieved 23 March 2023.
  5. ↑ R, Venkatesan (12 January 2018). "Active accounts: discount brokers gain market share". The Hindu Businessline. Retrieved 23 March 2024.
  6. ↑ Jha, Sneha (3 April 2018). "Technology helps us unleash innovation in the capital markets: Zerodha CTO Kailash Nadh". Economic Times | CIO. Retrieved 23 March 2024.
  7. ↑ "Zerodha - About". Zerodha.com.
  8. 1 2 Chitra, Rachel; Sinha, Partha (10 January 2019). "Zerodha replaces biggies as largest broker in India". The Times of India. Retrieved 23 March 2024.
  9. ↑ Pasha, Kemal (8 February 2022). "Zerodha's Kamath Leads $4mn-Fundraise By Marketing Tech Platform Kofluence". News Azi. Retrieved 23 March 2024.
  10. ↑ Bhalla, Kritti (22 June 2020). "Zerodha Claims Unicorn Valuation In ESOPs Buyback Plan". Inc42 Media. Retrieved 23 March 2024.
  11. ↑ "Zerodha Fund House Achieves ₹1,000 Crore AUM in Record Time, Reflects Growing Interest in Passive Investing". Bru Times News.
  12. ↑ "Zerodha Fund House AUM hits Rs 500 crore in 40 days, reaches Rs 1,000-crore mark". Business Today. 29 March 2024.
  13. ↑ Arakali, Harichandan (21 September 2018). "Nithin and Nikhil Kamath: Code Zero". Forbes India. Retrieved 23 March 2024.
  14. ↑ Mascarenhas, Rajesh (12 March 2015). "Average daily turnover surges in both F&O and cash segments; HNIs also get into the mix". Economic Times. Archived from the original on 17 March 2015.{{cite web}}: CS1 maint: unfit URL (link)
  15. ↑ Chanchani, Madhav (3 September 2015). "Broking startup Zerodha to enter non-banking finance space and expand overseas". The Economic Times. Archived from the original on 6 September 2015. Retrieved 23 March 2024.{{cite web}}: CS1 maint: unfit URL (link)
  16. ↑ "Zerodha Commodities Pvt. Ltd". zerodha.com. Archived from the original on 27 September 2012. Retrieved 23 March 2024.
  17. ↑ "ET Startup Awards 2016: How the Bootstrap Champ Zerodha is taking investment to the masses". The Economic Times. 12 January 2016. Retrieved 23 March 2024.
  18. ↑ Kamath, Nithin (4 December 2018). ""Zerodha – India's best retail brokerage for 2018" by NSE". Zerodha blog. Retrieved 23 March 2024.
  19. 1 2 "Zerodha: More than a discount-broking company". A Word To The World. 10 April 2023. Retrieved 23 March 2024.
  20. ↑ Bhakta, Pratik (24 September 2019). "Zerodha's Rainmatter invests Rs 4 crore in Finception". Economic Times. Retrieved 23 March 2024.
  21. ↑ Bhakta, Pratik (14 November 2019). "Zerodha steps up as angel investor". Economic Times. Retrieved 23 March 2024.
  22. ↑ "Zerodha applies for mutual fund license". Economic Times. 20 February 2020. Retrieved 23 March 2024.
  23. ↑ "Amidst Dismal Market Performance True Beacon's Impressive Debut". The Week Magazine (India). 25 February 2020. Retrieved 23 March 2024.
  24. ↑ Sanghvi, Disha; Borate, Neil. "Will Zerodha compensate investor losses caused by tech glitch?". LiveMint. Retrieved 23 March 2024.
  25. ↑ "Zerodha server down due to connectivity issue, management clarifies". Money Control. 27 February 2019. Retrieved 23 March 2024.
  26. ↑ "Unplugged, Zerodha not to depend on leased lines". The Hindu Business Line. 3 May 2018. Retrieved 23 March 2024.
  27. ↑ "Zerodha's Kite platform faces technical issues". CNBC-TV18. 15 April 2019. Retrieved 23 March 2024.
  28. ↑ Kaul, Abhinav (5 November 2020). "Some Zerodha traders peeved as Reliance Jio users face login issue". LiveMint. Retrieved 23 March 2024.

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