Zerodha, India’s largest stock broking platform can report a RS 2,500 crore profit, an estimated 12% jump in its year-on-year profit according to a report by HDFC Securities. The stockbroking platform is owned by billionaire brothers, Nithin Kamath and Nikhil Kamath.
Zerodha has a strong customer base of nearly 12 million customers on its platforms. It includes 2.5 million F&O users of which 1.5 million are active and places at least one order in a month. The platform through its flagship Kite app allows customers to trade in the stock markets including derivative segments, currency trading and commodity trading. Zerodha has a separate Coin App for investors looking to invest in Mutual Funds.
The report stated a "Sharp moderation in average monthly Demat additions at 140k-170k higher than industry levels.” Zerodha co-founder Nikhil Kamath had taken to Twitter to share that Zerodha’s new account openings were back to the pre-pandemic levels in comparison to the boost in account openings during the pandemic period.
The report added that there is an overlap of users opening multiple accounts, but 65 per cent of new accounts were first-time Zerodha investors according to new-to-KYC data. The report also stated that the top 35% of its customers account for 70% of its revenue.
Zerodha is a leading Indian financial services company that provides online trading services to its customers. Founded in 2010 by Nithin Kamath, Zerodha has emerged as a disruptive force in the traditional broking industry in India. One of the unique features of Zerodha is that it charges a flat fee of Rs. 20 per trade, regardless of the size of the trade. This is in contrast to traditional brokers who charge a percentage-based commission on trades, which can be quite high for large trades.
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