Zerodha Founder & CEO Nithin Kamath has claimed in a blog post that the company is the "largest retail brokerage firm in the world, not just India".
Bengaluru-based online stock trading startup Zerodha has taken a lead with the highest number of clients as compared to traditional giants like ICICI Securities, HDFC Securities, Kotak Securities, Motilal Oswal, and Sharekhan, according to a media report.
The National Stock Exchange (NSE) data reveals the eight-year-old trading startup has 8.47 lakh clients, a little more than ICICI Securities, which has 8.44 lakh clients. Others like HDFC Securities has 6.74 lakh, Sharekhan 5.4 lakh, and Kotal Securities has 4 lakh clients.
In a blog, Nithin Kamath, Founder & CEO, Zerodha also said the platform marks two million trades a day, and claims this makes the company the "largest retail brokerage firm in the world, not just India".
Kamath also announced that the startup has been awarded as the “Best retail brokerage firm in India for 2018,” by the National Stock Exchange (NSE).
Dismisses WhatsApp Rumours
Using this opportunity, Kamath said he wants to address an issue the company faces constantly. He writes that there have been naysayers who’ve said the business model of Zerodha wouldn’t work because it charges so little.
"Despite 2018 being our eighth, and our most successful year, we still see baseless rumors and misinformation about us being circulated on WhatsApp and social media, inciting people to not trade with us. I would like to share some facts that I hope you’ll keep in mind when you come across such smear campaigns," wrote Kamath.
Speaking about his financials, the CEO said the company is, "amongst the most well capitalised pure retail brokerage firms in India. We have over Rs 400 crore of promoter capital deployed in the business and we have zero debt". He added that, if there was to be any kind of volatility in the markets, like in 2008 where many brokers went bust, "you as our client are best placed to come out unscathed, thanks to the strength of our financials," he added.
He also assured that the company has its independence. "We have stayed away from raising any external equity or venture capital where almost every VC and PE continue holding the independence of building products for the love of it more than monetary goals," he writes.
Kamath further writes that like other brokerage firms, its employees do not have revenue targets, ensuring nothing gets mis-sold.
Touching upon how the company is growing the ecosystem, Kamath wrote about its educational initiatives, Varsity, Zconnect, and TradingQnA, which is run by Zerodha. "They have helped us get into the top 15 Investing related websites in the world," he added.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.