“Looking back, Aadhaar was the single most important point for opening an account online. Can’t thank the government and SEBI and the exchanges and depositories enough for doing this,” Kamath said.
Started 12 years ago by Nitin Kamath with businessman and brother Nikhil Kamath, the Bengaluru-based firm disrupted the broking industry in India, making the siblings billionaires.
Don’t do to others what you don’t want to be done to you is at the core of everything we do. It means… https://t.co/65jcgMSBFf
— Nitin Kamath (@nithin0dha) 1661515057000
“The plan for all customers to rely on word-of-mouth and offer a single offering had benefits that we never thought of initially. Kamat said on Twitter, “The economy of scale has impacted not only in technology but also in support and ops – the size of the team has remained the same as we went from 2 million to 10 million customers.
He added that when clients are offered by family or friends who are existing customers, they help bridge the gap in knowledge about the platform at the outset. “A big challenge for consumer apps in a complex business like ours,” he said, he began by charging account opening fees to cover the cost.
“We soon realized that the fee also instilled a sense of seriousness; Trading is risky and not like installing a gaming app. Further, only those are open accounts, which reduce the compliance cost of dormant accounts,” Kamath said.
Zerodha’s business model is unique in that they have a lean team and do not spend money on marketing or advertising, while the competition in the discount brokerage industry is increasing.
“Don’t do to others what you don’t want to be done to you is at the core of everything we do. This was not meant to be any spam calls, emails or push notifications to open an account or trigger trades. It also helped us in gaining credibility, which is one of the biggest challenges in the broking business.”