Wel-Come

Name-Pratap Shankarrao Waghmare

Roll No. 27
URICM Batch 2021-23
Subject- communication for manager -1
Topic – Zerodha case study
Abstract
 Zerodha is the brokerage institute that offers their services for fixed per
trade
 It is top most stock broker among all the broker
 It is the pioneer in modelling discount broking in India that launched on
15th Aug 2010.
 Their ground broking services in technology and support have led them
to reach the top
 Today they are among fasted growing brokerage on BSE, NSE, MCX.
 They introduce first ever flat free broking charge for 20 Rupee
 Introduction
 It is electronic trading platform founded on 15 Aug 2010 which
headquarter is present at Bangalore, Karnataka
 The founder of zerodha is Nitin Kamath and Nikhil Kamath
 In just 10 year it grows from zero to one Billion Doller valuation
company
 They provide services like
1. Equity trading
2. Derivative trading
3. Currency trading
4. Commodity trading
5. Mutual funds
6. Bonds
continue
 Zerotha won startup of the year at 2020 economic time startup awards
 With an active client base of 5 million user zerodha is the largest retails stock
broker in India
 It contributing more than 15% of daily retails volume across all Indian stock
exchange
 Before 2010, Trading and investment are two terms everyone wishes to
experiments but due to lack knowledge, high commission and brokerage charge
they couldn't do that
 Today zerodha provide around 1000+ regional customer care executives and
they are also having 23 major cities branches
Objective
 To study business model of zerodha
 To learn the success story of zerodha
 To learn market strategy of zerodha
 Business model

Zerodha’s business model works on the ” Low margin and high Volume
Model ”
Zerodha charges a minimal amount for transactions held by traders and
investors which directly helps Zerodha and other discounts brokerages to
get very high volumes.
They charge zero for all equity and direct mutual funds investment
The collection of small amounts from a large number of clients leads
them to get good revenue.
Also, the operational costs are a little low when compared to traditional
brokers in the market. Its online structure enables it to maintain low
operational costs.
Their Model has gained huge success and traction from consumers which
made them a leading Brokerage in India by Defeating its Rivals HDFC
Securities, Kotak, ICICI Etc.
 Products Offered By Zerodha:
• Kite: Trading Platform.
• Console: Account Management
• Coin: Free Mutual Funds
• Kite Connect API: For Developers
• Varsity: Financial Education
• Sentinel: Market Alert Tool Based On Cloud
• Quicko: Tax Filling System For Zerodha Traders
• Kill Switch: Risk Management for retail traders
Growth
 Before 2010, there was high brokerage charge, high commission and all
buying and selling of the stock were done physically and it was time
consuming
 It was very difficult for common man to understand the process and invest
in the stock market
 All the brokers were charging brokerage in % of invest amount.
 Then this Bangalore based discount based broking firm was come in the
market
 Today they are among fasted growing brokerage on BSE, NSE, MCX.
 They are adding 50000 to 75000 account every month and growing very
speedily
Growth of active account
 Zerodha Marketing Success Factors
1. Standard Proposition - The very first marketing strategy was to be
crystal clear about everything. Most users don't trust brokerage service
because it involves money. So they considered that thing by being clear
about everything. When the company put footsteps in the market, many
stockbrokers offered irrational prices and non-transparent pricing to clients.
Then Zerodha came up standard proposition with zero commitments. This
worked out well for the company. If you pay a look at the FAQ section of
the company, you will see the direct response and clear answers admired by
most of their users. The company doesn't believe in confusing its clients.
2. Concentrate on New Account Opening - The second reason for their
vast success was putting their minds to bring more customers. They didn't
have any relationship manager or dealer. They started focusing on getting a
new client. Today the company has more than 5 million clients.
Broker vs Active clients
How they make money?
 The company charges ₹20 or 0.03%, whichever is lower, for each
F&O and intraday equity trade.
 Since a large volume of transactions takes place on the platform,
it generates revenue. 
 The company charges ₹300 annually for account maintenance
 Zerodha reported revenue of INR 1093 Cr in FY 2020
 They had a profit of INR 592 Cr in FY 2020
 Zerodha made headlines when it earned itself a $1 billion
valuation, without having ever gone out to raise money from
investors. And now, the company is valued at a whopping $3
billion in the Hurun Global Unicorn List of 2020.
Zerodha competition
 The main competition of Zerodha is with Upstox, IIFL, Finvasia,
Angel Broking, SAS Online, Beeline Broking, Greetika Broking,
Trading Bells, Sharekhan, Grow and Karvy Stock Broking.
1. Upstox- They are with almost the same services and almost the
same brokerage structure
2. 5pasia- They are also with the same services but pricing is
different as they are offering zero brokerage trading. 5paisa
provide better services and brokerage is also lower (Rs.10 per
order flat)
3. Flyers- services and pricing structure as the same as Zerodha.
But they provide free API.
4. Angel Broking- They also provide the same services but the
margin offered is way higher.
Things That Make Zerodha Stand Out in the Market

 The reason why Zerodha is distinct from its users is their approach
to educate their users first. Zerodha does not provide stock
recommendations but unlike a full-fledged brokerage platform.
When new traders enter the site, they first must learn the ropes of the
trade. An engaged customer base would be driven by traders'
capacity to comprehend why they are going bankrupt or trade
sensibly. In 2015, Zerodha Varsity was developed with the same
goal in mind and a blog-connect to build interest in the website. In
2019, the Varsity App was released, as well as material in Hindi.
 Later there were Finception and LearnApp. Finception concentrates on
making financial material easy for its users, whereas LearnApp sells
finance information to consumers for a charge, including videos
handpicked by top fund institution specialists. They've been extending
their educational goal by using current collaborations.
 Furthermore, unlike the other companies, the Kamath siblings do not
impose charges for distribution or trading. Instead, they retain a 10%
portion of the earnings from the investment.
 Conclusion
 As we today studied about India’s top stock broker Zerodha Case Study- Business Model,
Founders, Competition the most fascinating thing we learned about the journey of Zerodha
founder Nitin Kamath. How he disrupted and changed the broking community completely.
 They are growing very rapidly but the thing with Zerodha founders we can learn is they
bootstrapped them and took it to the unicorn
 The trading become very easy
 Convenient way of investment without any hassle with 100% transparency and all the
things done in online mode
 We have to upgrade ourself accordingly to trend to run long in the business
 We can do big business with small margin
 The future goals of zerodha is to add more new investor to the Indian stock market with
the help of the platform
Thanks You