Nithin Kamath: Zerodha crosses the 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000 customers mark

On Friday, Zerodha CEO Nithin Kamath announced that the discount brokerage firm, India’s largest, had passed the customer crore mark.

“Looking back, the biggest tipping point was Aadhaar for online account opening. I cannot thank the government, Sebi, exchanges and custodians enough for making this possible,” Kamath said.

Founded 12 years ago by Nithin Kamath with trader and brother Nikhil Kamath, the Bengaluru-based company has disrupted India’s brokerage industry, turning siblings into billionaires.

“The plan to rely on word-of-mouth and provide a single offer for all customers had benefits that we had never originally thought of. Economies of scale started not only in technology , but also in support and operations – the size of the team has stayed the same as we have grown from 20lk to 1cr customers,” Kamath said on Twitter.

He said when customers are introduced by family members or friends who are existing customers, they also tend to help fill the knowledge gap on the platform initially. “A huge challenge for consumer apps in a complex business like ours,” he said, adding that they started by charging an account set-up fee to cover the costs.

“We soon realized that the fees also created a sense of seriousness; trading is risky and not like installing a gambling app. Also, only those who intend to open accounts, which reduces compliance costs for inactive accounts,” said Kamath.

Zerodha’s business model is unique in that they have a lean team and don’t spend money on marketing or advertising even as competition increases in the discount brokerage industry.

“Don’t do unto others what you don’t want done to you, has been at the heart of everything we do. This meant there were no spam calls, emails or push notifications to open accounts or trigger transactions. It also helped us gain credibility, the biggest challenge in brokerage,” he added.

Source link

Back To Top