Zerodha

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Zerodha Broking Ltd.
Zerodha Logo
Type of site
Private
Founded2010 August; 10 years ago (2010 August)
Headquarters,
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]

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 Bangalore and has physical presence in several major Indian cities.[7][8][9]

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[edit]

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[edit]

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[edit]

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[edit]

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[edit]

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[edit]

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[edit]

References[edit]

  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. ^ a b 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. ^ a b 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.