Zerodha is a name that has become synonymous with online trading in India. The company, founded by Nithin Kamath in 2010, is the largest online brokerage firm in the country, with over 5 million customers and a daily turnover of more than Rs 1 lakh crore. But how did Kamath, a college dropout and a former stock trader, achieve this feat? Here is his story.
Kamath was born in Mangalore, Karnataka, in 1980. He developed an interest in the stock market at a young age, as his father was a bank manager who used to invest in shares. Kamath started trading when he was 17, using his father's account. He soon dropped out of college to pursue trading full-time.
Kamath faced many challenges and losses in his initial years of trading. He experimented with different strategies and instruments, such as futures and options, commodities and currencies. He also learned from his mistakes and improved his skills. He became a successful trader and started managing money for others as well.
However, Kamath was not satisfied with the existing brokerage platforms in India. He felt that they were too expensive, complicated and inefficient. He wanted to create a platform that would offer low-cost, transparent and user-friendly trading services to the masses. He also wanted to democratize the access to the stock market and financial education in India.
That's how Zerodha was born. Kamath teamed up with his brother Nikhil, who was also a trader, and a few friends to start Zerodha in 2010. The company was bootstrapped with Rs 5 lakh of capital and operated from a small office in Bangalore. Zerodha offered a flat fee of Rs 20 per trade, irrespective of the size or volume of the trade. This was a radical departure from the traditional percentage-based commissions charged by other brokers.
Zerodha also invested heavily in technology and innovation. The company developed its own trading platform, called Kite, which was fast, sleek and intuitive. It also launched various tools and features, such as Coin (a platform for direct mutual fund investments), Varsity (an online learning portal for finance), Streak (a platform for creating and testing trading strategies), Smallcase (a platform for thematic investing) and more.
Zerodha's disruptive model and value proposition attracted millions of customers, especially young and first-time investors. The company grew exponentially and became profitable within a few years. Zerodha also received several awards and recognitions, such as the Economic Times Startup of the Year (2016), the NSE Retail Broker of the Year (2018) and the Business Standard Startup of the Year (2020).
Kamath has also been lauded for his vision, leadership and philanthropy. He has been featured in various lists of influential entrepreneurs and leaders, such as the Forbes India Rich List (2020), the Fortune India 40 Under 40 (2019) and the Economic Times 40 Under Forty (2018). He has also pledged to donate most of his wealth to social causes through his foundation, Rainmatter.
Kamath's journey from a college dropout to a billionaire entrepreneur is an inspiring one. He has shown that with passion, perseverance and innovation, one can achieve anything. He has also created a positive impact on the Indian financial ecosystem and society at large. Zerodha CEO Nithin Kamath is truly a role model for aspiring traders and entrepreneurs.