14-years of Zerodha
A few highlights from FY2023/24 at Zerodha.
For years now, I'd been talking about regulatory risk in running a brokerage, and this was the year when all the risks materialized at the same time.
We had plenty of positives.
Content
Today, we have some of the best content on all things stock market with Varsity videos, Varsity Live, Zero1, Markets by Zerodha, and more. All this is not just in English but also Hindi. We are working on more languages.
Customer trust
Our customers hold over Rs 5.66 lakh crores with us (in their demats) and are sitting on over Rs 1 lakh crore of unrealized gains.
Financials
Rs 4700 crore of profits. Our networth is over 40% of customer funds, which makes us among the safest brokers, not just in India but in the world.
Risks
As I alluded to in the beginning, many of the regulatory changes we were anticipating have come to pass. The True to Label circular, SEBI consultation paper on index derivatives, STT going up, annual maintenance charges impacted due to increased BSDA limits, and hit to our partner/referral business.
Along with this, there's never been more competition in the broking space. Then there's the ever-present threat of markets going down. This perfect storm means big hits to the business. The best for the Indian broking industry may well be behind us.
Pivot
The goal now is to pivot and reduce the reliance on F&O for revenue. So we will be launching margin trade funding (MTF), public market investments, private market investments through Rainmatter, loans against security with Zerodha Capital, Zerodha AMC JV with smallcase, Ditto insurance JV with Finshots, and more.
Check out the full post for all business updates.
Competitors are coming up with all-in-one platforms (Upstox, Groww, etc.) and which is very easy to use.
E.g., I am a huge fan of Zerodha and their products and personally use Zerodha platforms for all of my investments/trades but when it came to my brother, I suggested Groww because if it’s ease of use and it’s all-in-one approach.
I would like to know how Zerodha is tackling these?
You and your brother are inspiring people Nithin :). I have always seek help of well informed CA to invest in mutual funds (Regular plan). Now, having learned some good details about MFs, I will be investing in direct mutual funds at Zerodha.