Zerodha grew into one of India’s largest stockbrokers with very little paid advertising. It charged a flat, low brokerage, built its own trading software, and taught investors for free through Varsity. In FY 2024-25 it spent about Rs 47 crore on advertising against Rs 8,847 crore in operating revenue, according to its RoC filings.
- Background: how Zerodha started
- The problem: costly and opaque broking
- Strategy 1: a flat, simple brokerage model
- Strategy 2: growth through word of mouth, not ads
- Strategy 3: Varsity and free investor education
- Strategy 4: Kite and in-house technology
- Strategy 5: Rainmatter and a wider ecosystem
- Results: verified numbers
- Key lessons for Indian businesses and students
- Zerodha quick facts
- Frequently asked questions
Background: how Zerodha started
Zerodha began operations on 15 August 2010 in Bengaluru. It was founded by Nithin Kamath, a trader, with his brother Nikhil Kamath as co-founder. The name combines “zero” with “rodha”, a Sanskrit word for barrier.
The company has never raised money from outside investors. It started small and has been funded through its own profits. In 2013, Kailash Nadh joined to set up an in-house technology team, which went on to build Zerodha’s trading platforms.
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The problem: costly and opaque broking
When Zerodha started, most Indian retail investors traded through full-service brokers. These firms usually charged brokerage as a percentage of the trade value. A larger trade meant a larger fee, even though the work involved for the broker was the same.
For active traders, these percentage fees added up quickly. Trading software was often slow and dated, and the cost structure was hard for a new investor to understand. Many brokers also relied on branch networks and sales staff, whose costs were passed on to clients.
The opportunity was clear. Online trading was growing, and a broker with low fixed costs could charge far less and still make money, as long as it could attract clients in large numbers.
Strategy 1: a flat, simple brokerage model
Zerodha is widely credited with bringing the discount broking model to India. Instead of a percentage of trade value, it charged a small flat fee per order. Later, it made equity delivery trades free of brokerage.
According to Zerodha’s charges page, checked in October 2026, the current pricing is:
| Segment | Brokerage |
|---|---|
| Equity delivery | Zero |
| Equity intraday | 0.03% or Rs 20 per executed order, whichever is lower |
| Futures | 0.03% or Rs 20 per executed order, whichever is lower |
| Options | Flat Rs 20 per executed order |
| Direct mutual funds | Free |
| Account opening (individual) | Free |
Statutory charges such as STT, exchange fees, GST and stamp duty are extra, as with any broker. Annual maintenance charges also apply from the second year, depending on the account type and holdings.
The flat fee did two things. It saved active traders a large amount of money, which gave them a reason to switch. It also made pricing easy to explain, which helped clients recommend Zerodha to friends.
Strategy 2: growth through word of mouth, not ads
Nithin Kamath has said in several interviews and posts that Zerodha does not rely on advertising and does not run a sales team with growth targets. The numbers back this up. Zerodha’s FY 2024-25 filings, as reported by Entrackr, show advertising spend of Rs 47 crore, which is about 0.5% of its operating revenue.
Instead, growth came from three sources:
- Referrals: Clients who saved money told others. Zerodha runs a referral programme that shares a part of the brokerage with the referrer; it resumed a 10% referral commission in 2026.
- Founder communication: Kamath writes openly on social media and the company blog about pricing, regulation and the risks of trading. This built trust and kept the brand in the news without paid media.
- Free education: Varsity brought in people who were learning about markets and later opened accounts.
Strategy 3: Varsity and free investor education
Varsity is Zerodha’s free online learning programme. It was written by Karthik Rangappa, who now heads investor education at the company. It covers stock market basics, technical and fundamental analysis, futures and options, personal finance, taxation and more.
Varsity is available as written modules, videos, a mobile app and an online certification. It has no paywall and no ads. Many readers use it without ever opening a Zerodha account, and that is part of the point: it builds goodwill and makes Zerodha the first name people think of when they decide to invest.
Zerodha also runs Trading Q&A, a community forum where traders and investors ask and answer questions. Both work as content marketing, but neither feels like a sales pitch.
Strategy 4: Kite and in-house technology
Zerodha builds its core products itself. Its main platforms are:
- Kite: the web and mobile trading platform, known for a clean, fast interface.
- Console: the back office for reports, tax statements and portfolio analysis.
- Coin: the platform for direct mutual fund investments.
- Kite Connect: trading APIs that let developers and startups build tools on top of Zerodha accounts.
Owning the technology kept costs low and let the company change products quickly. Kite Connect also brought in a developer community. Any app built on it needs users to hold a Zerodha account, so partners became an indirect channel for new clients.
Strategy 5: Rainmatter and a wider ecosystem
Rainmatter is Zerodha’s fintech fund and incubator. It invests in startups that aim to grow India’s capital markets and make investing simpler. Several of these startups build products that work with Zerodha accounts, which adds features for clients without Zerodha building everything itself.
Zerodha has also expanded into new businesses. Zerodha Fund House, its asset management company set up with smallcase, launched in October 2023. Zerodha Capital offers lending products. In 2026, Kamath said the company planned US investing and integrated mutual fund transactions on Kite.
Results: verified numbers
Zerodha’s results over the last three years show both its scale and the impact of new F&O rules from SEBI that took effect from late 2024.
| Metric | Figure | Year and source |
|---|---|---|
| Operating revenue | Rs 9,993 crore | FY 2023-24, RoC filings via Entrackr |
| Profit | Rs 5,496 crore | FY 2023-24, RoC filings via Entrackr |
| Operating revenue | Rs 8,847 crore | FY 2024-25, RoC filings via Entrackr |
| Profit | Rs 4,237 crore (down 22.9%) | FY 2024-25, RoC filings via Entrackr |
| Advertising spend | Rs 47 crore | FY 2024-25, RoC filings via Entrackr |
| Cash and bank balances | Rs 22,679 crore | FY 2024-25, RoC filings via Entrackr |
| Net profit | Rs 4,283 crore (up about 1%) | FY 2025-26, Zerodha blog post reported by Inc42, August 2026 |
| Active clients on NSE | 67.62 lakh (14.88% share) | July 2026, NSE data reported by Inc42 |
| Total clients | Over 1.8 crore | Zerodha website, October 2026 |
Zerodha became India’s largest broker by active clients in 2019, overtaking ICICI Securities. It has since lost that position to Groww, which had about 1.31 crore active NSE clients in July 2026. Zerodha says it remains the largest broker by client assets.
Revenue in FY 2025-26 stayed at about the FY 2024-25 level. Brokerage income and the income it used to earn from exchange transaction charges both fell after SEBI’s changes to F&O trading and exchange fees. Profit still held steady, which shows how low its cost base is.
Key lessons for Indian businesses and students
1. Pricing can be the marketing
A simple, clearly cheaper price gave clients a story to tell their friends. When a product saves people money in a way they can see, word of mouth follows.
2. Teach before you sell
Varsity built trust over years. A business that helps customers understand a topic, even when they do not buy immediately, often becomes their first choice later. For readers starting out, our guide to using an SIP calculator is a practical first step.
3. Own the core technology
Building Kite in-house kept costs low and product quality high. Outsourcing the core product can make a company dependent on others for its main advantage.
4. Stay profitable and avoid outside pressure
Because Zerodha never raised outside capital, it had no investors pushing for fast growth at any cost. It could grow at its own pace and say no to ideas that did not fit.
5. Regulation is a real business risk
Zerodha’s profit fell in FY 2024-25 largely because of rule changes, not competition. Students should note that in financial services, regulation can change revenue overnight. Our explainer on value investing vs growth investing covers how long-term investors think about such risks.
Zerodha quick facts
| Item | Detail |
|---|---|
| Started | 15 August 2010 |
| Founders | Nithin Kamath (CEO) and Nikhil Kamath (co-founder) |
| Headquarters | Bengaluru, Karnataka |
| Funding | Bootstrapped, no external investors |
| Main products | Kite, Console, Coin, Kite Connect, Varsity |
| Brokerage | Zero on delivery; Rs 20 or 0.03% for intraday and futures; flat Rs 20 for options |
| Fintech fund | Rainmatter |
| Profit | Rs 4,283 crore (FY 2025-26) |
Frequently asked questions
How did Zerodha grow without advertising?
Zerodha grew mainly through low flat pricing, client referrals, free education through Varsity and open communication by its founder. Its FY 2024-25 advertising spend was about Rs 47 crore, roughly 0.5% of revenue.
Is Zerodha still the largest broker in India?
By active clients, no. Groww had about 1.31 crore active NSE clients in July 2026 against Zerodha’s 67.62 lakh. Zerodha says it is the largest broker by client assets.
What is Zerodha’s profit in FY26?
Zerodha reported a net profit of Rs 4,283 crore for FY 2025-26, up about 1% from FY 2024-25, according to a company blog post reported by Inc42 in August 2026.
What is Zerodha Varsity?
Varsity is Zerodha’s free stock market education programme. It offers modules on markets, trading, personal finance and taxation, available on the web, as videos and through an app.
Has Zerodha raised any funding?
No. Zerodha is bootstrapped and has grown on its own profits without external investors.
Sources: Zerodha about page, Zerodha charges page, Entrackr, November 2025, Inc42, August 2026.
