nithin kamath

Zerodha’s profit more than doubled to Rs 1,000 crore in FY21, says Nithin Kamath

The company has recently been in the news after its board approved an enabling resolution to allow promoters of the bootstrapped startup to draw a salary of Rs 100 crore.

Nithin Kamath tweeted on Sunday

India’s largest retail stockbroker Zerodha’s profit has more than doubled to Rs 1,000 crore in FY21 from the year-ago period, chief executive Nithin Kamath tweeted on Sunday. The gains are largely on the back of growing traction around online trading and stock investments among retail investors in India.

In FY20, the fintech stockbroker had reported a profit of Rs 440 crore which was backed by a robust 15% growth in revenue to Rs 1,093 crore during this period. The company had posted profits of Rs 350 crore and Rs 250 crore in FY19 and FY18, respectively.

Zerodha’s now comparable to those of legacy bank brokers

Kamath, who founded Zerodha with brother Nikhil Kamath in 2010, said that its annual profits of Rs 1,000 crore is now comparable to those of legacy bank brokers such as ICICI Direct and HDFC Securities. Unlike these brokers, Zerodha’s business model involves charging customers a “discount brokerage” or a flat fee of Rs 20, irrespective of the investment size as opposed to a percentage commission.

With over 5 million active users, Zerodha is India’s largest retail stockbroking platform, managing around 15% of all trading volume in India. The company has seen massive traction on its platform Kite in 2020, as millions of retail stock traders drawn by a volatile stock market, opened their demat accounts with Zerodha.

Apart from Zerodha, Kamath brothers also run an investment fund called True Beacon which was founded in 2019. In 2021, Kamath brothers and Patil also launched Rainmatter Foundation, a non-governmental organisation (NGO) supporting climate change action. It has committed a $100 million fund for grants and projects across India.

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