Zerodha, one of India’s largest online brokerages has posted almost a 60% YoY jump in both its profits and revenues. Its profit is ₹ 1,800 crores, while its revenue is ₹ 4,300 Crores as per the company’s public filings.
| FY’20 | FY’21 | FY’22 | |
| Revenue | ₹ 938.4 Cr | ₹ 2,729 Cr | ₹ 4,300 Cr* |
| Profit | ₹ 424 Cr | ₹ 1,122 Cr | ₹ 1,800 Cr* |
| Active User Base | 1.4 Million | 3.6 Million | 6.2 Million |
*This data is as per Zerodha’s unaudited statements, still to be filed with the Ministry of Corporate Affairs.
“Last financial year we saw many users coming in, there was market volatility and a lot of initial public offerings (IPOs)…so we were able to clock higher daily average users,” said Nithin Kamath, Founder and CEO of Zerodha.
“Last two years have been an outlier for trading companies. Trading volumes have peaked, but this is a very cyclical business,” he added.
Most trading companies have clocked higher business in the last two years due to a substantial increase in the number of Demat accounts in India.
Zerodha had an active client base of around 6.2 million as per NSE data on March 31, 2022. The company clocks about 10-12 million orders every day. However, Kamath said that the company is preparing itself for a downturn as there are very few IPOs coming this year.
Zerodha currently leverages third-party order management systems (OMS) such as Refinitive, but it is actively working on developing an in-house order management system (OMS) so that they are in full control of its product. This came after Zerodha faced the rage of public investors after its OMS froze during trading hours in February 2019.
Further, the company is working on its nudge feature that helps traders on the platform to make more informed decisions in relation to their investments.
