Zerodha India's biggest bootstrap Unicorn - a billion-dollar Valuation Company without advertisements | Startup Bazaar

Zerodha India’s biggest bootstrap Unicorn – a billion-dollar Valuation Company without advertisements

ZERODHA: THE CASE STUDY

 

Zerodha India’s first stockbroking company with the lowest commission rate which is the most discounted firm in the matters of trading and investing your money, founded by the Kamath brothers is one such startup that has succeeded in no time without the support of marketing or any other promotional tools.

A little backstory about ‘Zerodha’!!

Nithin Kamath and his younger brother Nikhil Kamath had subjected an existing issue in the society, which was not recognized by many was the urge in people to start trading, investing their money, buying shares from stock markets, etc.

The world is moving ahead towards digitization and trading is one such aspect nowadays which primarily has been legalized, advertisements of applications like Crypto Currency and many more are played openly, and secondly, the public is enhanced by this side beauty via which they could earn a passive income but surely depending upon the possibilities and their luck.

Despite this eagerness and anticipation, some lively real-time drawbacks are driving them to step back from the same. Can you guess some? Let’s say I have asked any layman on road to trade his money, I could expect two revert backs on a ground note; one he would be interested if I’ll be with a substantial and appreciable scheme for them, and the second that would be in majority is he would not be aware of trading and investments or if slightly engaged into the latter there would be more than thinkable factors not making him trade his money like unawareness about trading, high charges from the trading platforms and many more.

About the initiation from the founders of Zerodha!!

Nithin Kamath in his teenager was introduced to trading, and at a very young age he started to trade his money by buying the shares in the stock market, the excitement was big enough that this 17 years younger boy did not stop after it.

Although the ones who are apprised of all the corner edges of trading are aware of the variability and unpredictability of it too, the market is not predictable if you are investing in the market the chances would be equal on both the sides whether you are going to earn the profit you did not even think about or if the market disrupts, profit to dies also forget about the invested money too.

Profitably making money through trading can be considered a standard and a mainstream stage in trading, but debasement commences as soon as we face the loss, correspondingly the same happened with Nithin Kamath twice in the years 2001-2002 and 2009-2010, these were the catastrophic years in the format of market predictions, market’s plight went at a decline and crisis took place in the respective years and Nithin had drowned all his traded and invested money.

Although the path of trading still did not leave him to pave and that was the period he was fascinated and conversant to think about being a broker in the trading firm, as he was fond of the same and also knew the gaps of trading, he went forward to fill in all those with his younger brother Nikhil Kamath.

As an individualist, he was the first ever to think out of the box in this area, he enlightened his way and grew to make such a thought into trading facilities that were never provided in past years of his personal experience in trading.

Locating the problems where Zerodha can overshine!!

The reasons which were not letting people trade were realized by him, and he was encouraged to become an online broker with his trading platform which would provide the public with the lowest brokerage charges, that is commissions would be discounted and that’s how ‘Zerodha’ was born.

The motive and the vision of the company initially were not profit intended but the idea was to generate the simplest and the safest trading services that would retain and make the users reliable too at the same time.

The accuracy Kamath wanted to come up with was the finest trading policy that too with least impedes and would be free and easy to understand, the fee a broker would charge once you are ready to buy in or sell- out the shares in the stock market is also low- priced and hence economical in Kamath’s Zerodha.

The company today has become a significantly scalable discounted trading firm, where the target audience at the initial stages was ‘Youth’, but why? As the identification lay in the fact that they were the ones who tend to earn more by investing and trading but due to the absence of such a platform ‘Zerodha’ they were not started with the same, this target went right on the board and Zerodha is unexpectedly contributing towards finances and commercial status of our nation.

In the regard to several key details of ‘Zerodha’:

  • Despite the certainty that the platform is the highest on the graph when it comes to the discounted stockbroking firms in India, other than this overwhelming feature Zerodha is ready to permit you to trade your money with zero additional charges. Amazed? Know-how; if your period of securing and investing in stocks is prolonged a day, the firm will charge nothing from you.
  • How is Zerodha profitable for the founders and as a business? Each time the user is trading his money, the service asks for rupees 20 as a linear rate, plus the fee remains the same for all the trading within a single day.
  • The amount gap is low for the business, but at the same level, the magnitude and extent of the same are much more widely and out of reach when it comes to other competitors.
  • To hold- on in the market as always ambitious and pushing its limits, an alteration in the phase of modernization is from time- to the time required. Zerodha too had come with some emerging products for their users that are Console ( a control panel with the customer waking them about the thorough statements and resolutions), Kite (which utilizes fresh automation for customer’s content in trading and investing), Kite Connect API (for individual traders to make them satisfied using data and findings), Sentinel (helps you to be a market observant, compulsion to be Zerodha user is not needed), Z Connect (readout about trading and investments via the blogs here), Varsity ( learn if you are unaware about different aspects of the stock market from here), Coin (discounted buy and sell of mutual funds), Rainmatter (an apparatus to guide in new startups for their shares in stock markets).
  • Being a trading platform, collaboration with other big names becomes a crucial part when you are with zero advertisements and marketing. Therefore, some of the partnered names with Zerodha are Streak, Sensibull, small case, Golden Pi, and many more.

This was a brief talk on Zerodha.

Other Resources:

Zerodha Case Study – Business Model, Founders, Competition

https://www.analyticssteps.com/blogs/success-story-zerodha

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