Zerodha

Zerodha is an Indian financial service company (member of NSE, BSE, MCX, MCX-SX),[3][4] that offers retail and institutional broking, currencies and commodities trading, mutual funds, and bonds. Founded in 2010,[5] the company is headquartered in Bangalore and has physical presence in several major Indian cities.[6][7][8]

Zerodha

Type of site	Private
Founded	2010 August (2010 August)
Headquarters	Bangalore, Karnataka , India
Founder(s)	Nithin Kamath Nikhil Kamath Kailash Nadh
CEO	Nithin Kamath
Industry	Stock Broker
Products	Kite, Coin, Console, Varsity
Services	Equity Trading, Derivatives Trading, Currency Trading, Commodity Trading , Mutual Funds,
Employees	1100+[1]
Subsidiaries	Zerodha Commodities Pvt. Ltd.
URL	zerodha.com
Users	9 lakh+[2]

As of 2019, Zerodha is the largest retail stock broker in India by active client base, and contributes upwards of 2% of daily retail volumes across Indian stock exchanges.[9]

In June 2020, Zerodha entered the unicorn club with a self-assessed valuation of about $1 Billion. This valuation is based on the ESOP buyback exercise the company undertook valuing each share at more than four times of the book value of INR 700 per share. [10]

Business model

A flat fee of a maximum of Rs 20 is applied to a trade, irrespective of its size, and it offers an array of purpose built trading applications to its retail customers.[11]

Corporate affairs

Zerodha has a client base of 12 lakh[12] customers.[13][14] The company offers commodities trading via its wholly owned subsidiary, Zerodha Commodities Pvt. Ltd.[15]

It has won the "Economic Times Startup Awards 2016" in the "Bootstrap Champ" category.[16] 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.[17]

Rainmatter

Founded in 2014, Rainmatter was founded as a early-stage fund with a corpus of Rs. 50 Crore. 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 Cred, Finception, Smallcase and Sensibull.[18][19][20]

True Beacon and Mutual Fund AMC

In 2019, Zerodha started True Beacon, 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.[18][21][22]

Technical glitches and outages

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.[23][24][25][26]

See also

• List of companies of India
• Robinhood_(company)

References

1. "30 Under 30: Nikhil Kamath - Chess to derivatives, all in a day's work". Forbes. Retrieved 21 September 2016.
2. "Zerodha faces 2nd snag in 6 months; leaves traders miffed". Retrieved 24 July 2020 – via The Economic Times.
3. Barbora, Lisa Pallavi (12 April 2013). "Advantage customers: providers shift focus". Mint. HT Media. Retrieved 11 April 2015.
4. "Bengaluru broking firm Zerodha scraps fee for cash trades; rivals miffed by move". The Economic Times. 2 December 2015. Retrieved 2 December 2015.
5. Baruah, Ayushman. "Zerodha Trade Winds of Change". BW Businessworld. Retrieved 26 January 2017.
6. "Zerodha opens its Ahmedabad support center". The Economic Times. Retrieved 1 August 2013.
7. Thomas, Tanya (4 January 2017). "Active accounts: discount brokers gain market share". The Hindu Business Line. Retrieved 12 August 2017.
8. "Technology helps us unleash innovation in the capital markets: Zerodha CTO Kailash Nadh". Economic Times. 3 April 2018. Retrieved 11 August 2018.
9. "Zerodha replaces biggies as largest broker in India - Times of India". The Times of India. Retrieved 12 January 2019.
10. "Zerodha Claims Unicorn Valuation In ESOPs Buyback Plan". Inc42 Media (in Latin). 22 June 2020. Retrieved 25 June 2020.
11. "Here's how Zerodha became India's biggest stock brokerage - Times of India". The Times of India. Retrieved 24 August 2019.
12. "Nithin and Nikhil Kamath: Code Zero". Forbes India. 21 September 2018. Retrieved 28 September 2018.
13. "Average daily turnover surges in both F&O and cash segments; HNIs also get into the mix". Economic Times. 12 March 2015. Retrieved 9 April 2015.
14. "Broking startup Zerodha to enter non-banking finance space and expand overseas". The Economic Times. 3 September 2015. Retrieved 28 September 2015.
15. "Zerodha commodities". Retrieved 24 July 2020.
16. "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.
17. ""Zerodha – India's best retail brokerage for 2018" by NSE". Zerodha blog. 4 December 2018.
18. Kamath, Shashank (17 June 2020). "Zerodha: More than a discount-broking company". A Word To The World. Retrieved 22 June 2020.
19. www.ETtech.com. "Zerodha's Rainmatter invests Rs 4 crore in Finception - ETtech". ETtech.com. Retrieved 22 June 2020.
20. Bhakta, Pratik (14 November 2019). "Zerodha steps up as angel investor". The Economic Times. Retrieved 22 June 2020.
21. "Zerodha applies for mutual fund license". The Economic Times. 20 February 2020. Retrieved 22 June 2020.
22. "Amidst Dismal Market Performance True Beacon's Impressive Debut". The Week. Retrieved 22 June 2020.
23. "Will Zerodha compensate investor losses caused by tech glitch?". Livemint. Retrieved 19 March 2020.
24. "Zerodha server down due to connectivity issue, management clarifies". Moneycontrol. Retrieved 19 March 2020.
25. "Unplugged, Zerodha not to depend on leased lines". Business Line. Retrieved 19 March 2020.
26. "Zerodha's Kite platform faces technical issues". CNBC TV18. Retrieved 19 March 2020.