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Monday, March 4, 2024

From small trader to billionaire entrepreneur: Success story of Nithin Kamath, the Zerodha founder

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One of the biggest online brokerage firms in the nation is called Zerodha. Nithin Kamath founded the business along with his brother and five other individuals. The company’s gross profit for the fiscal year 2022 was a staggering Rs 2,094 crore. The company’s earnings grew as well, reaching Rs. 4964 crore. He used to work in a contact centre for a pitiful pay of Rs 8000 per month, but now he makes millions of dollars every month. Here is the motivational tale of Nithin Kamath, the creator of Zerodha.

Part of India’s unicorn boom is Zerodha. It is a unicorn, but with one important distinction: the business is entirely self-funded and extremely successful.

Kamath began trading stocks when he was just 17 years old. At the time, he was a call centre employee. He was employed in the contact centre from 2001 until 2005.

In a gym, he once met an NRI. He was questioned about his occupation. He displayed his statement. The man provided Kamath his management account after being impressed. He was their first customer. Kamath then decided to quit his work.

As many as 12 brokerage businesses employed Nithin. Then he realised that stock brokers hadn’t evolved along with the trends. He started Zerodha, an online brokerage, after identifying an opportunity. The National Stock Exchange offered its members free software at the time.

In addition to his brother Nikhil Kamath, the business was founded with their assistance. After a year, the first 1000 clients arrived. However, a 2011 Economic Times piece that mentioned his business boosted his brand. His account numbers increased dramatically from 100 to 400 per month.

He also made an effort to gather money in 2009. But because he didn’t come from a business background, they didn’t trust his firm or him. His educational history didn’t give them much hope either. He doesn’t regret it today, though, because he has a successful business instead of the financing he had hoped for.

Low margin and high volume are the guiding concepts of Zerodha’s business strategy. Due to Zerodha’s large user base, even low transaction costs result in significant revenue for the company. The business charges Rs 20 for intraday equities, commodities, and F&O trades, or 0.03 percent, whichever is less. There are no fees for equity delivery investments.

Kamath hasn’t employed a single employee with an IIT or IIM background, despite the fact that the whole business world wants to do so. He said on a recent podcast that he had trouble integrating these individuals into Zerodha. He asserted that those who work in these institutions prefer to advance their own careers and self over the organisation.  He claimed that if such people are willing to try something new for the company, he will hire them.

According to him, many who work in the startup environment similarly desire rapid growth at all costs. He claimed that he doesn’t believe anything in life can happen rapidly.

Newsdesk

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