Zerodha is a stock broking and trading platform that provides equity investments and financial services. The startup offers an online platform to invest in stocks, mutual funds, and more. The platform offering trading stock solutions announced a 21 percent increase in its operational revenue to Rs 8,320 crore in FY24. The startup provides a product portfolio trading platform with streaming market data and charts. These broking services and subscription-based pricing models are the company’s primary source of revenue. The startup provides a secure trading experience using advanced technologies.
Entrackr mentioned in its report that the firm also earns its income through subscription and commission fees. The operating revenue for this financial year saw a huge increase compared to the previous financial year. The startup posted a 62 percent increase in its profit to Rs 4,700 crore in FY24. The data intelligence platform, tracxn mentioned that the company previously secured around 3.6 billion USD across multiple funding rounds since its inception. The company had 3 institutional investors including Straddle Capital and Rainmatter. Zerodha had a profit after tax of s 2,907 crore in FY23. The data provided by the firm highlights that more than half of its revenue was translated into profit.
The Bengaluru startup provides equity investments, broking, currencies, and commodities trading platforms. The online platform uses advanced technologies to provide a seamless user experience. The company expects a decrease in its scale due to upcoming regulations from the Securities and Exchange Board of India. This will affect all broking platforms by eliminating the volume-based transaction fee model for free equity delivery trades. Zerodha claims to have an active client base of 79 lakh with over 1,200 employees working under them.
The CEO of Zerodha, Nithin Kamath mentioned in a blog post that looking at the profitability of the last three years the firm’s net worth is around 40 percent of the customer funds managed by the startup. Zerodha can charge the full annual maintenance charge for customers with demat holdings of Rs 10 lakh or more than the current threshold value of Rs 4 lakh. Entrackr reported. The broking platform faces competition from trading or investment platforms such as Groww, Upstox, and Finvasia.
Conclusion :
The Bengaluru-based equity investment and broking startup Zerodha reported a 21 percent increase in its operational revenue to Rs 8,320 crore in FY24. This trading platform provides several services including equity investments, institutional broking, and commodities trading. These services and commission fees are the firm’s primary sources of revenue.
The profit also increased by 62 percent to Rs 4,700 crore in FY24. The company plans to reduce its total expenditure by minimizing its operating and employee expenses. The company has secured over 3.6 billion USD across multiple funding rounds. Zerodha expects a decline in its scale due to upcoming regulations from the Securities and Exchange Board of India. The startup competes with other platforms in the same market segment like Groww.
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