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Zerodha

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Zerodha Broking Ltd
Company typePrivate
IndustryFinancial services
FoundedAugust 2010; 14 years ago (August 2010)
Founders
Headquarters
Bengaluru, Karnataka
,
India
Products
  • Kite
  • Coin
  • Console
  • Varsity
Services
RevenueIncrease ₹9,372 crore (US$1.1 billion) (FY24)[1]
Increase ₹5,496 crore (US$640 million) (FY24)[1]
SubsidiariesZerodha Commodities Pvt Ltd
Websitezerodha.com

Zerodha Broking Ltd is an Indian brokerage and financial services company, based in Bengaluru. It offers an electronic trading platform that facilitates institutional and retail trading of stocks, derivatives, currencies, commodities, mutual funds and bonds. It is a member of the National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE), and the Multi Commodity Exchange (MCX).[2][3]

Zerodha was founded and bootstrapped by brothers Nithin and Nikhil Kamath.[4][5][6] As of May 2024, it has 7.5 million active customers registered with the NSE, making it the second largest stockbroker in India.[7][8]

History

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The company was founded in August 2010 by 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".[9][10]

In 2019, Zerodha became the largest retail stockbroker in India by active client base, overtaking ICICI Securities. It contributed up to 2% of daily retail volumes on Indian stock exchanges at the time.[11]

In June 2020, Zerodha became a "unicorn" with a self-assigned valuation of around $1 billion based on an ESOP buyback.[12] Zerodha had about 1.3 million customers in early 2020, which rose to nearly 10 million by the end of 2022.[13]

In 2020, Zerodha applied for a licence to set up an AMC mutual fund in India[14] and launched its fund house in 2023.[15]

Products and subsidiaries

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A fixed commission of up to ₹20 is applied to all equity trading and derivative transactions, regardless of its size. Equity delivery is commission-free.[11] The company also offers commodity trading through its wholly owned subsidiary, Zerodha Commodities Pvt. Ltd.[16][17][18]

Rainmatter

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In 2014, Rainmatter was founded as an early-stage fund 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] The company has also backed GoldenPi and WintWealth, which are bond purchasing platforms.[21][22]

True Beacon

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In 2019, Zerodha started True Beacon, an alternative investment fund (AIF) with a defensive investment strategy.[23]

Zerodha Fund House

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In October 2023, Zerodha launched Zerodha Fund House, an asset management company, in partnership with Smallcase. It focused on index funds and had only direct plans which paid no commissions to distributors.[24][25] In March 2024, the fund house had an AUM of ₹10 billion (US$120 million).[26]

FLOSS Fund

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On 15 October 2024, Zerodha announced the launch of FLOSS Fund dedicated to Free/Libre and Open Source projects globally. Zerodha committed to giving up to $1 million per year to support developers and communities that create and maintain such projects.[27]

Technical problems and interruptions

[edit]

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.[28][29][30][31]

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, acknowledged the problem.[32]

See also

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References

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  1. ^ a b Choudhary, Lokesh (14 December 2024). "Zerodha's Revenue Nears INR 10,000 Cr Mark". Inc42 Media. Retrieved 17 January 2025.
  2. ^ Barbora, Lisa Pallavi (12 April 2013). "Advantage customers: providers shift focus". LiveMint. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  3. ^ "Bengaluru broking firm Zerodha scraps fee for cash trades; rivals miffed by move". The Economic Times. 2 December 2015. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  4. ^ Verma, Mansi (31 January 2023). "Bootstrapped Zerodha, Zoho become the most profitable new-age companies in FY22". Moneycontrol. Retrieved 17 January 2025.
  5. ^ 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.
  6. ^ R, Venkatesan (12 January 2018). "Active accounts: discount brokers gain market share". The Hindu Businessline. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  7. ^ Tiwari, Khushboo (15 April 2024). "Brokerage firm Groww seals top spot with nearly 23% market share". Business Standard. Archived from the original on 16 April 2024. Retrieved 16 June 2024.
  8. ^ "Report 1C: Report of Redressal of Complaints lodged by clients against Trading Members (TMs) during 2024-25: Last Updated on 31-MAY-2024". National Stock Exchange of India. 31 May 2024. Archived from the original on 11 June 2024. Retrieved 16 June 2024.
  9. ^ "Zerodha - About". Zerodha.com.
  10. ^ Arakali, Harichandan (21 September 2018). "Nithin and Nikhil Kamath: Code Zero". Forbes India. Retrieved 23 March 2024.
  11. ^ a b Chitra, Rachel; Sinha, Partha (10 January 2019). "Zerodha replaces biggies as largest broker in India". The Times of India. Archived from the original on 26 September 2023. Retrieved 23 March 2024.
  12. ^ Bhalla, Kritti (22 June 2020). "Zerodha Claims Unicorn Valuation In ESOPs Buyback Plan". Inc42 Media. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  13. ^ "Why are so many Indians piling into stocks?". The Economist. Archived from the original on 10 May 2024. Retrieved 10 May 2024.
  14. ^ "Zerodha applies for mutual fund license". Economic Times. 20 February 2020. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  15. ^ Dubey, Navneet (25 October 2023). "Nithin Kamath led Zerodha Fund House launches its maiden funds. Here are the crucial details". Business Today. Archived from the original on 25 October 2023. Retrieved 16 June 2024.
  16. ^ "Zerodha Commodities Pvt. Ltd". zerodha.com. Archived from the original on 27 September 2012. Retrieved 23 March 2024.
  17. ^ 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. Retrieved 23 March 2024.
  18. ^ 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.
  19. ^ Bhakta, Pratik (24 September 2019). "Zerodha's Rainmatter invests Rs 4 crore in Finception". Economic Times. Archived from the original on 24 June 2020. Retrieved 23 March 2024.
  20. ^ Bhakta, Pratik (14 November 2019). "Zerodha steps up as angel investor". Economic Times. Retrieved 23 March 2024.
  21. ^ Roy, Kumar Shankar (26 November 2022). "GoldenPi: Should you buy bonds on this platform?". BusinessLine. Archived from the original on 25 June 2024. Retrieved 25 June 2024.
  22. ^ Manchanda, Harsh Upadhyay & Kunal (19 May 2022). "Exclusive: Wint Wealth raises nearly $15 Mn led by Eight Roads Ventures". Entrackr. Archived from the original on 25 June 2024. Retrieved 25 June 2024.
  23. ^ "Amidst Dismal Market Performance True Beacon's Impressive Debut". The Week Magazine (India). 25 February 2020. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  24. ^ "Introducing Zerodha Fund House". Zerodha. 30 October 2023. Archived from the original on 24 February 2024. Retrieved 16 June 2024.
  25. ^ Kaul, Abhinav (12 April 2023). "Kamath calling Kamath! Zerodha, Smallcase form JV to launch mutual fund house". Moneycontrol. Archived from the original on 12 April 2023. Retrieved 16 June 2024.
  26. ^ "Zerodha Fund House AUM hits Rs 500 crore in 40 days, reaches Rs 1,000-crore mark". Business Today. 29 March 2024. Archived from the original on 25 June 2024. Retrieved 31 March 2024.
  27. ^ Claburn, Thomas (17 October 2024). "Manifest file destiny: Declare your funding needs via JSON". The Register. Archived from the original on 5 November 2024.
  28. ^ Sanghvi, Disha; Borate, Neil. "Will Zerodha compensate investor losses caused by tech glitch?". LiveMint. Archived from the original on 19 January 2023. Retrieved 23 March 2024.
  29. ^ "Zerodha server down due to connectivity issue, management clarifies". Money Control. 27 February 2019. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  30. ^ "Unplugged, Zerodha not to depend on leased lines". The Hindu Business Line. 3 May 2018. Archived from the original on 25 June 2024. Retrieved 23 March 2024.
  31. ^ "Zerodha's Kite platform faces technical issues". CNBC-TV18. 15 April 2019. Retrieved 23 March 2024.
  32. ^ Kaul, Abhinav (5 November 2020). "Some Zerodha traders peeved as Reliance Jio users face login issue". LiveMint. Archived from the original on 19 January 2023. Retrieved 23 March 2024.
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