ZERODHA BUSINESS MODEL: The Father Of Stock Broking

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In this tech world, the trend of investing is increasing day by day. More and more people have started investing to achieve their long-term goals. So, the need for brokers has also grown in the market. With this there comes the story of one of the largest stockbroking platforms name Zerodha.

ZERODHA BUSINESS MODEL: The Beginning

zerodha business model

Zerodha which was started by Nithin Kamath and Nikhil Kamath in 2010 in Banglore is a service company which provides services related to stock investing, mutual fund investing ETF’s investing etc. Zerodha is famous for offering huge discounts on its brokerage and now it is one of India’s best brokerage platform.

It has a total employee of 1300 people and is a customer-centric company. All the services that Zerodha provides are for their valuable customers. It has a client-based of around 9 lakh customers. 

ZERODHA BUSINESS MODEL

Zerodha Business Model works on a very low operating cost, and they have a very less or no marketing cost. The users of Zerodha increase by referrals and affiliate marketing. Moreover, Zerodha has very low brokerage which attracts more and more customers mostly young adults.

This increases the sales of the company through which it earns money. Also, the company makes money from its intraday users. The company takes around Rs 20 maximum from its intraday operators. The mobile app of Zerodha is also very user-friendly and very easy to use which makes the customer more comfortable. So, with the help of this Zerodha makes money.

Also Read: NIFTY AND SENSEX: Backbone of Indian Stock Market

ZERODHA COMPETITORS

  • Upstox
  • Groww
  • 5paisa
  • Paytm Money
  • Angel Broking

ZERODHA FUNDINGS

zerodha business model
  1. Zerodha is a bootstrap startup that is now valued at around $1 Billion.
  2. The company Founder has a 100% stake.
  3. Zerodha is now offering ESOP(Employee stock ownership plan) so that its employees can be more productive in the company.
  4. It mainly depends on outside fundings such as Anger investors, venture capitalists, or private equity.
  5. Even in the pandemic, Zerodha recorded rapid growth by doubling its user base as more and more people have started investing.

Visit: Zerodha