Zerodha, a leading stock brokerage firm, is broadening its horizons by collaborating with startups in various financial sectors.
Nithin Kamath, the founder of Zerodha, shared insights into this strategy, stating, “We’ve chosen the path of partnering with startups where we don’t need to own 100% of the venture; we’re comfortable holding a 60% stake.” Kamath made this remark during a fireside chat with Shradha Sharma, Founder & CEO of YourStory, at the 15th edition of TechSparks.
Zerodha’s approach is designed to support entrepreneurs while allowing them the flexibility to lead and grow their businesses. Some of its key ventures include Zerodha Capital, which focuses on providing loans against securities, and Ditto, an expanding insurtech company. Zerodha is also collaborating with smallcase, a thematic investing platform, to develop an asset management company (AMC).
Kamath highlighted the importance of preserving the entrepreneurial spirit of startup founders, saying, “To start something new, you need that entrepreneurial energy… and that’s something very difficult to hire or find.” Beyond its commercial activities, Zerodha is also investing in social impact through its Rainmatter Foundation, which is dedicated to addressing environmental and climate issues, as well as supporting related livelihoods.
Despite Zerodha’s impressive financial performance—posting a revenue of ₹8,320 crore and a profit of ₹4,700 crore, excluding an unrealised gain of ₹1,000 crore—Kamath anticipates a decrease in revenue and profits for the current fiscal year.
This projection is due to recent regulatory changes, specifically a SEBI circular issued in July, which mandates uniform fees for all members of market infrastructure institutions from October 1. The company is also grappling with rising competition in an increasingly saturated market.
