In a candid revelation, Zerodha co-founder and CEO Nithin Kamath stated that it would not have been possible if they had tried to launch Zerodha in 2025. Kamath made this remark while responding to a user’s question on Zerodha’s ‘Trading Q&A’ platform, later sharing the response on the social media platform X on April 16.
Zerodha, which revolutionised India’s brokerage industry by offering zero-cost trading in 2010, benefited from a market where high brokerage fees earlier restricted many investors. Kamath explained that today’s brokerage landscape is vastly different, flooded with numerous low-cost players, making market entry and differentiation significantly more challenging.
Competition Has Intensified
Kamath highlighted that over the past decade, the trading and brokerage sectors have evolved dramatically. A number of brokerage firms now offer services at minimal fees, leading to heightened competition. He admitted that in today’s crowded market, launching a platform similar to Zerodha would not be a viable business proposition, as replicating what others are already doing offers little advantage.
Alternative Strategy If Launching Today
Looking back on how he would go about the business today, Kamath said he would concentrate on providing distinctive features or even charge a premium for more research services. Although the strategy would get fewer customers, it could still guarantee improved profitability, he added.
Massive Growth in Demat Accounts
Despite intense competition, the retail investor base has expanded significantly. As of August last year, the number of demat accounts in India crossed 171 million – a figure higher than the total populations of countries like Russia, Mexico, and Japan.
Brokerage Industry: Then vs Now
Back in 2010, high brokerage charges were a barrier preventing many Indians from investing in the stock market. Zerodha’s entry with a zero-cost model dramatically shifted the industry landscape. Today, alongside Zerodha, platforms like Groww, Upstox, and Angel One dominate the sector, offering low-cost, technology-driven trading services.
Evolving Space
Kamath’s observation highlights not only how much the Indian brokerage space has evolved but also how first-mover benefits and timing became key factors for Zerodha’s success story. While competition keeps fueling, companies now have to innovate beyond cheaper fees to sustain and expand business in a congested market space.
Also Read: Nithin Kamath Advises Investors to Pause Trading Amid Market Uncertainty
