Success Story | Foundr MAGAZINE

Zerodha Success Story: Stockbroking Industry in India.

Trading and Investments are the two terms everyone wishes to trial with but is reticent to step in due to numerous reasons like lack of knowledge, hefty commission and brokerage charges, misgivings in the request and so on 2010 were the times when the biggest global fiscal extremity happed and the world was facing a trading hush.

News Zerodha

In India, the stockbroking companies that was also endured a downfall and were using old technologies to give stockbroking services. numerous youthful generation people weren’t educated enough to indeed suppose of trading at a veritably youthful age. While all of these were encountered by nearly every broker in India, Bangalore grounded reduction broking establishment, Zerodha was innovated in 2010 by Mr. Nithin Kamath that provides trading services at blinked brokerage freights and a stoner-friendly interface with trustability. This establishment enjoys a massive customer base of over 2.5 million druggies. Let us deep dive into the trip of how Zerodha success story and bandy how it came the biggest reduction broker in India in this composition. Quick Note Nithin Kamath and Nikhil Kamath are the authors of Zerodha, India’s biggest stock brokerage company in terms of volume of trade. According to the IIFL Wealth Hurun India Rich List 2021 Kamath and his family are ranked as the 63rd richest Indians. Their net worth is estimated to be over$3.1 billion.

The founding of Zerodha: How did it start

TheCo-founder of Zerodha “ Nithin Kamath ”, before establishing Zerodha, was working in the call center at the night and he used to trade during the morning hours. At the age of 17, he got introduced to the stock requests by his friend and since also he started trading Although he made a good knob plutocrat by trading in stocks, he lost all the plutocrat during 2001 and 2002 when the requests crashed. Over a period of time, he was landed a cheque from a foreign HNI to manage his plutocrat. ultimately, he joined Reliance Money as a sub-broker and made a lot of plutocrat by adding big guests to Reliance plutocrat.

Add Note:

If you want to open a FREE Demat account with Zerodha. Nevertheless, again lost a significant quantum of plutocrat in the alternate request crash in the middle of the global fiscal extremity in 2008- 09. After trading full- time for over 10 times, this counter culturist decided to come a broker when he allowed that the time has come to give a different kind of stockbroking services that he noway came across during the 10 times span of his trading. 

He felt digitization and online stoner-friendly platform are the need of an hour when he first allowed of starting Zerodha. Nitin Kamath also observed that the reason why the youthful generation isn’t willing to start trading is that there are high brokerage charges enforced on the deals. His end was to come an online broker using the rearmost technologies that’s further people- first than profit-first.

Zerodha is deduced from the Sanskrit word Rodha which means Obstructions. The name Zerodha means ‘ No Obstructions ’. Hence, the author aimed at furnishing a hassle-free, low brokerage trading platform. He targeted guests who are youthful and more tech- expertise to contribute to the capital request ecosystem.

The Formula of Zerodha’s Success:

It’s indeed a fact that there's no roadway to success. still, Nithin Kamath, when innovated this reduction broking establishment, decided to give technology-effective and cost-effective services to its guests. He observed that there’s a huge pause between the commissions charged by the other brokerage enterprises and the quantum of plutocrat actually entered by the guests. In addition to that, the technology that was used was too old and Nithin felt the need to introduce a smart platform that enables druggies to trade online comfortably. He allowed of furnishing services at a low cost where the idea of charging low commission clicked into his mind.He also wanted to attract further youthful guests who frequently don’t enter into trading due to high commission charges. With this end, he started his establishment and moment it has come the biggest reduction broking establishment. He believes if we don’t depend too important on foreign capital and invest in our own companies, the day isn’t far when India will come an economically strong country.Unexpectedly, the establishment hardly spent any plutocrat on advertising or marketing for its own establishment. They don’t run any announcements. The author believes in ‘ the word of mouth is your true marketing ’.therefore, with a veritably low operating cost Zerodha was suitable to capture a large number of guests.Interestingly, trading is handed free of cost at his stockbroking establishment if the period of holding for shares is longer than a day. They make plutocrat by charging a flat figure of Rs. 20 for futures, options, and intra day trading.

Closing Thoughts:

To add up, contending with big players like HDFC and ICICI is indeed a daunting task that the genius was suitable to manage up. still, there are other challengers too similar as Upstox, Groww, SAS Online, Angle Broking, Trading Bells, etc. still, the author wishes to continue with his low- periphery strategy. This establishment also developed a strategy to start dealing Treasury bills, Government Securities, and Sovereign Gold Bonds which is everyone’s preference while the requests are facing a downfall. Nithin explosively believes in not running after the plutocrat but doing the right effects for a long period of time. This is what’s the reason his establishment has come one of the top-most broking enterprises in the country over the eight to nine times of time. To add to that, after facing so numerous challenges, the establishment has made its way to persistently increase its client base time by time. To get further perceptivity you can read Zerodha review 2021.That’s all for this post. I hope this Zerodha success story is inspiring for all the budding entrepreneurs and business suckers who are planning to make commodity big in the stock request assiduity. Stay safe and happy investing.

Scroll to Top