Zerodha’s customers, revenue and profits have grown 5X since March 2022, when Covid-19 hit, said Nithin Kamath, CEO and Co-founder of the brokerage firm.
Nithin Kamath in his blog stated that certain factors have helped their growth. “One is the phenomenal bull market in India. Developments such as eKYC, online digital signatures, and UPI turned the largely offline industry into a truly online, paperless one, enabling mass participation. And for us specifically, adoption via word-of-mouth from our customers,” he said.
He also said their higher gross margins are a result of several conscious decisions, such as, “We don’t spend any money on marketing or advertising. We have a lean tech infrastructure built on top of high-quality Free and open-source software (FOSS) that they adopt and maintain in-house. We avoid external SaaS/vendor dependencies and lock-ins and self-host systems as much as possible. We have grown our teams slowly and organically, regardless of industry trends,” Kamath said.
Its revenue, which it collects from the customers and passes on to the exchanges, stands at nearly 25%.
“The net worth of the business today is around 30% of all funds that clients park with us at any given time. At 30% of our own capital as a percentage of total client funds being handled, we are probably among the safest brokers around the world in terms of capitalisation,” Kamath said.
According to a report by
, at present, the top five discount brokers account for 59.1% of overall NSE active clients, up from 58.9% in October 2022. Zerodha remained the top broker with a 24bp rise in market share to 18.3%. However, it reported a 0.5% MoM decline in its client count to 66 lakh.
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