Zerodha’s valuation will double from $1 billion last year when the brokerage firm repurchased some stock options from employees for Rs 60-65 crore.
“Maybe conservative valuations, but our business risks are high. Personally, the proudest moment in this journey,” Nithin Kamath said.
Zerodha’s valuation is its own assessment of its operations and is not based on the usual valuation done by external investors who invest in start-ups. Zerodha has never raised external capital in its lifetime as its founders have stuck to the bootstrap model of running a start-up.
The online brokerage firm has come to dominate the stock broking market within 10 years of its existence, helped by a mobile and Internet-based delivery model and focus on zero discounting.
Zerodha’s model has meant that it today controls nearly 19 per cent of the stock brokerage industry, ahead of heavyweights such as
, Motilal Oswal Financial Services and HDFC Securities.
“To help customers do better, we have to do things that may not be good for business in the short run and we may lose revenues. We are probably in the best position to attempt solving this problem given that we have no investor obligations to chase revenues,” Kamath said.
