Journey of Kamath brothers from founding Zerodha to coming on Forbes list

The Kamath brothers who started India’s first online discount brokerage firm Zerodha in 2010 entered the Forbes list of India’s 100 richest 2020.

Nitin Kamath and Nikhil Kamath, the founders of Zerodha (the biggest stockbroker giant) an AMC ( Asset Management Company) have entered into Forbes 100 richest Indian’s.

Nikhil Kamth (age: 34) became the youngest billionaire of India 2020 with the net worth of more than $1.55 billion(Rs 11..3 thousand crore).

Zerodha and Kamath brothers
Source- Zerodha and economic times

Table of Contents

Kamath brothers started India’s first online discount brokerage firm in 2010 with a team of only five peoples.

What is Zerodha?

Zerodha is a big stock trading giant. It is a biggest online brokerage firm in India.

Zerodha offers trading in equities, bonds, currencies, commodities, and mutual funds. An investor who wants to open an account in Zerodha has to spend rupees 300. But equity delivery investments are free.

A securities transaction tax is charged variably for equity delivery, equity intraday, futures, and options. It charges a flat fee of rupees 24 on every trade, irrespective of its size with no brokerage fee. It has been adding nearly 2 lakh accounts every month.

To empower retail traders and investors, Zerodha runs a number of popular open online education and community initiatives which helps common people to understand stock trading and other trading ideas. The Zerodha launched varsity, a learning module to educate the young investors and youth of India for investing the first time.

Zerodha also provides a trading Q&A, an active forum where traders and investors, can discuss stock ideas. Then there is a ‘Z connect’ an interactive blogs.

What does Zerodha mean?

Zerodha is taken from Sanskrit. Zerodha is a combination of Zero and ‘rodha’ the the Sanskrit word for barrier.

What is the journey of Zerodha?

As you know that Zerodha was started in  2010. In early the startup used to focus on day traders at the beginning. Since then, the duo has grown massively with over 22 lakh active users the platforms see over 5 million traders every day.

“Our innovative pricing models and in-house Technology have made us the biggest stockbroker in India in terms of active retail clients,” the company said.

Which company Kamath Brothers have founded other than Zerodha?

Zerodha also has started a fintech fund and incubator, which has invested in several fintech startups with the goal of growing the Indian capital market very largely.

After Zerodha, the Kamath brothers also founded and investment management firmed which is known as True beacon. It is aimed at ultra high net-worth investors and operates at a Zero-fee model. The AMC does not charge an account opening fee, redemption fee, maintenance fee. It charges a 10% performance fee on the gains at the end of the financial year from the investor

How the company boosted during COVID-19?

As you know after the COVID-19 lockdown many people wanted to learn new skills, therefore, most discount brokerages have reported a sharp rise in the opening of a new Demat account during COVID-19.

In Zerodha the number of Demat accounts opened from January to May surpassed the overall client growth figure of last year. And Nikhil Kamath in response to this said the average age of these new investors had dropped to 30 and the average ticket size to about RS 80,000.

“Retail investors, after a long time, seem to have come into the markets after a crash, buying large-cap Bluechip equity amidst the fall in between 8000-9000 Nifty and are seeing substantial returns. And it has created a big positive ecosystem overall and could lead to increased participation from retail in the days to come” Kamat added.

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