Case Study > Zerodha Case Study_ Dr. D D Y PAtil International School FIN MISC. The Discount Brokera

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ZERODHA :• Stands for : “NO OBSTRUCTION” • That Supports : The Discount Brokerage.

• Motto : To offer the lowest, cheapest brokerage rates for futures and options, commodity trading, equity and mutual funds.

• Vision : Is to create a brokerage-free world to benefit the most important stakeholders when it comes to the financial markets.

• They committ to provide the best possible customer experience through highly personalized service and support.

FOUNDER AND COFOUNDER :• NITHIN KAMAT :He is the Founder & Chief Executive Officer (CEO) of Zerodha.He is an Indian entrepreneur and a stockbroker and a columnist for The Financial Express. He has a net worth of 25,600 crore Crores aprx. He graduated from Bangalore Institute of Technology specialized in Electronics and Telecommunications.

• NIKHIL KAMAT :Nikhil Kamat is the Co-Founder and Chief Information Officer (CIO) of brokerage firm Zerodha. Nikhil Kamat along with his elder brother has also started the asset management company “True Beacon”.

BRIEF :1.Founded by NITHIN KAMAT in 2010, Bangalore.

2.Bootstraped and Profitable firm in 2020.

3.Accounts 15% of the retail trading volume.

4.Employees about 1100 peoples distributed among 6 core teams.

COMPETITORS :-

PROBLEMS AND SOLUTIONS • Problems:-

• Solutions Made for:-

1. Young generation was not ready to start trading because..

a. Low margin and high volume model. Charging smaller amounts from large no. of customers lead to high revenue of company.

a. High Brokerage Charges. b. Lack of edu in Youth about Stock market.

b. Zerodha Varsity was established.

c. User Friendly environment was c. User Friendly environment was Absent. available for youth.

HOW DID IT START ?

CHALLENGES :• Lack of Delivery of valuable advisory and analysis reports of ones investment and trading activities be it weekly or quarterly.

• By 2012, many brokers started copying what zerodha was doing using the same trading platform and branding.

• To overcome Technical Error’s like app down or charting Error’s due to high traffic on application., they hired KAILASH NADH, now Zerodha’s Chief Technology Officer (CTO).

In 2015, Zerodha ditched NSE’s free trading software it has been using since its early days and launched Kite.

ECOSYSTEM • Console :- Reports and Visualizations for insightful knowledge.

• Kite connect API :- Mainly focused on independent traders and startup’s to focus on Building Trading and Investment Platforms.

• Sentinel :- Platform to create alerts, based on price, and trade quantity.

• Varsity :- Collection of stockmarket lessons.

• Coin :- Zerodha Coin is an order collection platform that lets you buy mutual funds online, with no commission, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your DEMAT account accessible in one place.

REVENUE :• FY2020-2021 Revenue – Rs 2728 cr Net Profit – Rs 1122 cr • It took Zerodha almost ten years to get to 2 million customer’s, which was around the time covid hit.

• But it only took 18 months to add the following 6 million customers.

FUTURE PLAN :• Upcoming goal for Zerodha is the aim to add 10 to 15 million new investors of the indian stock market with the aid of the platform.

“India is very dependent on foreign capital to drive the country. For any country to do well, you need residents to put their money in the market. The money shouldn’t just stay in fix deposits and real estate.

They want to encourage people to educate themselves and put the money in the ecosystem in some way or the other to drive growth.”

- Kamat Brother’s concluded.