SUCCESS STORY OF ZERODHA

A financial service company, Zerodha was founded in 2010. Main objective of this online discount broking company is to give lower costs to the customers. As a member of NSE, BSE, MCX, MCX-SX, it gives brokerage services to stock market traders. The company is headquartered in Bangalore. As they were the first discount broker in the country when they started their operation,  the company has earned a great customer base. There is one more thing that has contributed to its success of zerodha story is that the company always comes up with innovative ideas backed with different strategies and consistent efforts. “The Free Trade Zone” is the tagline of the company. Many online education and community ambitions  are run by zerodha to authorize retail traders and investors.



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The secret of Zerodha’s Success

 

The two brothers who came up with this innovative startup idea were Nithin Kamath and Nikhil Kamath. They only made the zerodha story a success. There’s no alternate route to success, it's a harsh truth. Though, Nithin chose to give technology-efficient and cost-proficient services to its clients when he established this discount broking company. An immense slack between the commissions charged by the other brokerage firms and the amount of cash really obtained by the clients was observed by him.


  • Nithin wanted to introduce a more smart platform, likewise, which empowers clients to trade online comfortably. He thought of offering services at a low cost.

  • Also, Clients who frequently don't go into trading because of high commission charges, he wished to pull in such kinds of people.

  • With this point, he started his firm and today it has become the biggest discount broking company.

 

How does Zerodha make money?

 

A straightforward revenue model is not offered by zerodha. However, the company is undoubtedly one of the most popular trading networks in India. Traders across the nation use this platform to trade and invest. The company charges rupees 20 or 0.03%, whichever is lower, for each intraday equity as well as f&O trade. It generates revenue since a large volume of transactions takes place on the platform. Additionally, the company charges ₹300 for account maintenance annually. 

 

A rapid increase has been seen by the company in its user base in the past few years. In the stock exchange, it contributes to more than 2% of investors from its platform that would eventually increase the revenue of Zerodha.

 

Conclusion


To add more new investors to the Indian stock, is the future goal of Zerodha with the help of the platform. An incredible growth was seen during the COVID- 19 lockdowns period, that time acted as the catalysts for its development as various new retail investors rushed to the share market. The company has managed to grow its earnings by over 15% to ₹1,093.64 crores from ₹950 crores earned in FY19, during the fiscal year which  ended in March 2020.


It is completely appreciable that the company spends barely any amount on advertising, but it still manages to enjoy a tremendous market reputation as noticeable from its impeccable growth. So this was a brief about the Zerodha story of success.
Location: Noida, Uttar Pradesh, India

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