14-years of Zerodha
A few highlights from FY2023/24 @zerodhaonline
For years now, I’d been talking about regulatory risk in running a brokerage, and this was the year when all the risks materialized at the same time.
We had plenty of positives.
Content
Today, we have some of the best content on all things stock market with @ZerodhaVarsity videos, Varsity Live, Zero1, @zerodhamarkets and more. All this is not just in English but also Hindi. We are working on more languages.
Customer trust
Our customers hold over Rs 5.66 lakh crores with us (in their demats) and are sitting on over Rs 1 lakh crore of unrealized gains.
Financials
Rs 4700 crore of profits. Our networth is over 40% of customer funds, which makes us among the safest brokers, not just in India but in the world.
Risks
As I alluded to in the beginning, many of the regulatory changes we were anticipating have come to pass. The True to Label circular, SEBI consultation paper on index derivatives, STT going up, annual maintenance charges impacted due to increased BSDA limits, and hit to our partner/referral business.
Along with this, there’s never been more competition in the broking space. Then there’s the ever-present threat of markets going down. This perfect storm means big hits to the business. The best for the Indian broking industry may well be behind us.
Pivot
The goal now is to pivot and reduce the reliance on F&O for revenue. So we will be launching margin trade funding (MTF), public market investments, private market investments through @Rainmatterin, loans against security with @zerodhacapital, @ZerodhaAMC JV with smallcase, @joinditto insurance JV with @finshots and more.