Zerodha reached a new milestone as the company now crossed the ‘One Crore customer’ mark on its platform. Nithin Kamath, Founder and Chief Executive Officer of Zerodha took to LinkedIn to share the news and also about the journey of his company so far.
“Looking back, the biggest tipping point was Aadhar for online account opening. I can’t thank the government, SEBI, and exchanges & depositories enough for making this happen,” he wrote in his post.
Zerodha, the most successful stock brokerage firm in India, recently turned 12 years old. Over the years the company has not just grown in terms of users but also profits.
Image Source – Zerodha
In his post, Kamath also thanked his customers for helping the business grow through economies of scale. “When customers are introduced by family or friends who are existing clients, they also tend to help bridge the knowledge gap about the platforms at the start. A huge challenge for consumer apps in a complex business like ours,” he wrote.
Part of Zerodhas success can also be attributed to the sudden increase in the popularity of trading and investing among Millennials and Gen Z.
This led to Zerodha being one of the most profitable startups in India. In fact, the company reported a net profit of Rs 1,122.31 crore in FY21, nearly three times the previous year, and this came on the back of a similar surge in revenue.
Further, Kamath also wrote about the reason why they started charging account opening fees on the platform. He explained that charging marginal fees created a sense of seriousness among people. “Trading is risky and isn’t like installing a gaming app,” he added.
The company was started back in 2010 by Nithin Kamath and Nikhil Kamath. The objective was to solve some of the problems that Nithin Kamath faced during his time as a stock trader such as High Brokerage fees, sluggish online trading platforms, and outmoded services.
The company is also focused on maintaining its integrity. No spam calls, emails or push notifications for account opening or trigger trades helped Zerodha gain credibility among customers. “Don’t do unto others what you don’t want to be done unto you, wrote Nithin Kamath to conclude his post.
Written by Anoushka Roy
