Zerodha- Nithin and Nikhil
Zerodha, Nithin, and Nikhil bootstrapped in 2010 to solve the challenges he had as a trader over the course of a decade.
Founder- Brothers Duo- Nithin and Nikhil
Zerodha has completely transformed the Indian broking sector. Nithin Kamath stated that he preferred a Google-like platform that was easy to use over a Yahoo-like platform. When he felt the need to reform the system, he founded Zerodha with his younger brother, Nikhil, and the rest is history, or rather, a case study for everyone. They began operations on August 15, 2010, with the purpose of removing all cost, support, and technological constraints that traders and investors experience in India. The organisation was given the title Zerodha, which is a mix of Zero and "Rodha," a Sanskrit term that means "barrier."
There is no such thing as a quick fix for success. However, when Nithin Kamath created this discount brokerage business, he sought to give consumers technologically advanced and cost-effective services. He saw that there is a significant difference between the commissions charged by other brokerage firms and the quantity of money collected by consumers. Furthermore, the technology in use was outdated, and Nithin saw the necessity to offer a smart platform that allows people to trade online with ease.
He considered how he might provide services at a low cost, and the concept of charging a low commission came to him. He also wants to attract more youthful consumers, who are sometimes put off by large commission fees when it comes to trading. He founded his company with this goal in mind, and it has since grown to become the largest discount brokerage firm in the world. He believes that if we do not rely too much on foreign cash and instead invest in our own businesses, India will become economically successful in the not-too-distant future. Surprisingly, the company spent very little money on advertising and marketing for itself. There are no adverts on their site. 'Word of mouth is your ultimate marketing,' says the founder.
Surprisingly, at his stockbroking business, trading is free if the length of holding for shares is more than a day. They gain money by charging a fixed charge of Rs. 20 for trading futures, options, and intraday. Other rivals charge significantly more, dependent on the percentage of a transaction that is exchanged. It operates on the 'low margin – big volume' business strategy.
To stay competitive, the company released a slew of new goods to broaden its appeal and address some of its problems. Here's a quick rundown of what each product offers:
Kite is their premier trading platform, with live market data, powerful charting, an appealing user interface, and more. On Android and iOS smartphones, the Kite experience is smooth.
Console- This is your Zerodha account's main dashboard. With in-depth reports and visualisations, you can get insight into your transactions and investments. Coin Buy commission-free direct mutual funds online and have them delivered to your Demat account. On your Android and iOS devices, enjoy the investing experience.
Kite- With their incredibly basic HTTP/JSON APIs, you can create sophisticated trading systems and experiences. Build your investment app and demonstrate it to their customer base if you're a startup.
Varsity- An easy-to-understand compilation of stock market teachings, complete with visuals and in-depth analysis. To help you learn on the fly, the content is divided down into bite-size cards.
Sentinel- Sentinel is a tool that lets you set up market notifications. Price, trade quantity, and open interest may all be used to personalise the notifications. The unique part of this product is that it does not require you to be a Zerodha client to utilise it.
Coin- It offers commission-free mutual fund purchases that are sent straight to the customer's Demat account.
Rainmatter- Rainmatter is a capital markets incubator that provides cash, training, and a minority share in the exchange to new enterprises.
In addition, to provide greater value to its clients, Zerodha has worked with a number of renowned stock market platforms and websites such as Streak, Sensibull, and others.
Despite its enormous success and large user base, Zerodha had a few obstacles, which are detailed below:
- To begin with, Zerodha does not offer stock advice or market-related calls that would allow its consumers to make purchasing and selling decisions.
- They also struggled to give relevant advice reports and analysis of one's assets and trading activity on a monthly or quarterly basis. The majority of large full-service brokers offer research reports.
- The major issues that Zerodha has are inefficient customer assistance and a lack of timely customer care because the company is largely online and has no offline support centres.
- Previously, technical difficulties such as the app being unavailable for a few minutes or graphing mistakes had been recorded, owing to excessive market activity.
Certain sectors of the economy, particularly the digital ones, have rebounded, and Zerodha has benefited greatly from what has occurred in the previous 18 months, since what they had anticipated to happen in 5-6 years in terms of client base has occurred in these 18 months. There are still some huge pockets that need to catch up, but things are gradually returning to normal.
Zerodha, #153/154, 4th Cross, J.P Nagar 4th Phase, Opp. Clarence Public School, Bengaluru - 560078
Monday – Friday (8:30 AM - 5:00 PM)
Contact: 080 4718 1888 / 1999, 080 7190 9543 / 954