Zerodha co-founder Nithin Kamath saw a massive jump in his net worth in last one year. Kamath his family’s net worth rose a whopping 51 per cent to Rs 25,600 crore during last year, according to the IIFL Wealth Hurun India Rich List 2021. Kamath and his family are ranked as the 63rd richest Indians as per the list. Kamath’s younger brother, Nikhil, has a net worth of around Rs 11,000 crore.
Zerodha, at present stands tall as one of India’s largest stock brokerage firms in terms of its sheer volume of trade. A record numbers of investors opened trading accounts on Zerodha to dive into equity investment during pandemic.
The Kamath brothers started down the road on this journey in 2010 when they founded Zerodha. At the beginning of it all, their main focus was on the day traders. Fast-forward ten years later and the business has grown exponentially.
“The plan back in 2010 was for Nikhil to trade with the very little money we had left after starting Zerodha to generate enough runway for the retail broking attempt. And that’s what he did, and that’s how we survived,” founder Nithin Kamath recently shared in a blog. Ten years on, with their products and technology and education, the startup has grown massively. “Our disruptive pricing models and in-house technology have made us the biggest stock broker in India in terms of active retail clients,” the company said.
Zerodha allows its customers to trade in equities, bonds, currencies, commodities and mutual funds. An investor just has to spend a minimum of Rs 300 to open an account in Zerodha. The equity delivery investments are free. The securities transaction tax is charged variably for equity delivery, equity intraday, futures and options. The company also charges a flat fee of Rs 20 for every trade, irrespective of the size of the trade or if it has brokerage fees or not. As it stands, the trend indicates that the company has added nearly 2 lakh accounts every month.
“We have commoditised retail investing, making it accessible to millions of users at practically zero cost, equipping them with more high-quality tools than they would probably ever need to invest in the markets. All this, while being completely bootstrapped, driven purely by our passion,” Zerodha’s chief executive officer Nithin Kamath recalled.
“The last two years have been really spectacular and we were lucky to be at the right place right time. As market expanded, there has been significant growth,” Kamath told News18 in May. In early 2020, we had 20 lakh customers, now we have nearly 60 lakh customers on our platform, he added, till May-end.
For the fiscal year ending March 2021, Zerodha more than doubled its profit to ₹1,000 crore.
To empower retail traders and investors, Zerodha runs a number of popular open online educational and community initiatives. The company launched Varsity, a learning module to educate the young investors investing for the first time. It also runs Trading Q&A, an active forum were traders and investors, can discuss stock ideas. Then there is ‘Z Connect’ an interactive blog.
Rainmatter, Zerodha’s fintech fund and incubator, has invested in several fintech startups with the goal of growing the Indian capital markets.
In addition to Zerodha, Kamath brothers’ founded an investment management firm True Beacon. It is aimed at ultra-high net worth investors and operates on a zero-fee model. The AMC does not charge an account opening fee, redemption fee, maintenance fee. It charges a 10 per cent performance fee on the gains at the end of the financial year from the investor.
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