Bengaluru, October 17, 2025 – Nithin Kamath and his brother Nikhil Kamath launched Zerodha in 2010, pioneering discount brokerage with zero commissions on equity delivery trades to make stock investing accessible for everyday Indians. Now India’s largest retail broker with over 16 million clients contributing 15% of daily trading volumes, Zerodha reported a 40% brokerage revenue drop in Q1 FY26 due to regulatory changes, yet eyes Rs 10,000 crore revenue by FY26 through diversification into lending and asset management, highlighting the sector’s resilience where retail participation hit 4.92 crore demat accounts amid a 20.5% surge in new additions.
From Trading Trials to Tech Triumph: The Kamath Brothers’ Roots
Nithin Kamath, born in 1983 in Vijayawada, Andhra Pradesh, to a restaurateur father and doctor mother, developed an early fascination with markets during family discussions on business. After earning a B.E. in Electronics from Bangalore Institute of Technology, he dove into trading in 2001, facing high fees and poor tools that nearly bankrupted him multiple times. “Those early losses taught me the system’s flaws—high costs blocked most Indians from participating,” Nithin shared in a 2024 Forbes India interview.
Nikhil Kamath, born in 1986, dropped out after 10th grade and started trading at 17 from a call center job earning $1,000 annually. Self-taught in finance, he joined Nithin in 2006 to form Kamath & Associates, a sub-brokerage managing high-net-worth portfolios. Their shared struggles—Nithin losing 90% of his capital in 2008—inspired a low-cost model. “We wanted to remove barriers so anyone could trade,” Nikhil told CNBC-TV18 in June 2025, crediting their complementary skills: Nithin’s operations focus and Nikhil’s financial acumen.
Founding Zerodha: Zero Barriers, Infinite Access
Zerodha—blending “zero” and Sanskrit for “rodha” (barrier)—launched on August 15, 2010, as a bootstrapped discount broker charging flat Rs 20 per trade, slashing costs from 0.3% commissions. Nithin coded the initial platform, while Nikhil handled compliance. Starting with 50 clients in Bengaluru, it hit profitability in year one, a rarity in fintech.
The model exploded post-2014, with free equity delivery trades drawing 1 million clients by 2018. Zerodha’s tech stack, including Kite (mobile trading app with 10 million downloads), and educational tools like Varsity empowered novices. “We built for the long haul, not hype,” Nithin noted in a 2025 CNBC-TV18 interview, as the firm avoided VC funding to retain 100% control.
Growth Milestones: From Discount Pioneer to Fintech Ecosystem
Zerodha’s milestones underscore relentless innovation. By 2020, it captured 15% of retail volumes without ads, relying on word-of-mouth. Rainmatter, the in-house incubator launched in 2016, invested in 50+ fintechs like Smallcase and Cred. Zerodha Coin (2019) simplified mutual funds, while Zerodha Capital (2021) entered lending with zero NPAs.
Regulatory headwinds hit in 2025: SEBI’s referral payout curbs and true-to-label norms for options trading caused a 40% Q1 FY26 brokerage dip. Yet, diversification shines—Zerodha Capital’s FY25 profit rose 78% to Rs 12.5 crore on Rs 36 crore revenue, with its loan book tripling to Rs 381 crore. Overall, Zerodha’s net worth hit ~Rs 20,000 crore in FY24, with 16+ million clients placing billions of orders annually.
Zerodha’s Key Financial Milestones
| Fiscal Year | Revenue (Rs Crore) | Profit (Rs Crore) | Key Driver |
|---|---|---|---|
| FY23 | 6,867 | 3,244 | Trading surge |
| FY24 | 9,372 | 5,496 | Client growth |
| FY25 | ~8,000 (est.) | ~4,500 (est.) | Diversification |
| FY26 (Target) | 10,000 | N/A | Lending & AMC |
Source: Company filings and reports cited in Business Standard and Entrackr.
Challenges and Philanthropy: Navigating Regulations with Purpose
Zerodha faced scrutiny in 2024 over SEBI’s weekly F&O expiry limits, potentially halving derivatives revenue—its 80% earner. Nithin addressed this in June 2025, forecasting a 10-20% annual drop but ruling out fee hikes. “We’re preparing for a lull with our lean team of 1,200,” he told CNBC-TV18, highlighting no external funding needs.
The brothers’ philanthropy amplifies impact: Rainmatter Foundation (2021) funds climate and education initiatives, while Nikhil’s WTF is podcast (2024) hosted PM Modi and Bill Gates by January 2025. Nithin, a SEBI committee member, advocates for market reforms. Their net worths—Nithin at $2.5 billion and Nikhil at $2.6 billion per Forbes March 2025—fuel ventures like Nikhil’s True Beacon (2020) and Gruhas (2021).
Why Zerodha Matters: Empowering India’s Retail Revolution
Zerodha democratizes finance, onboarding 20.5% more demat accounts in FY25 to 4.92 crore, enabling wealth creation for millions. It creates 1,200 jobs and invests in 50+ startups, fostering a vibrant ecosystem. The Kamaths’ bootstrap ethos—rejecting IPOs for independence (Nithin: 50:50 but leaning no; Nikhil: against unless pros outweigh cons)—prioritizes users over valuations ($7.7 billion per Hurun 2024).
Looking ahead, Zerodha eyes banking entry and global fintech via Rainmatter, targeting 10-15% long-term growth. As Nithin reflected in October 2025, “We’re not just a broker; we’re building financial literacy for generations.” Their story—from trading losses to market leaders—proves barriers fall to bold vision.
In India’s rising markets, Zerodha trades on trust, one order at a time.
Also read: Delivering Desires: Sriharsha Majety, Nandan Reddy, and Rahul Jaimini’s Swiggy Serves India’s Food Revolution with Swift Expansion
Instagram Post Title📈🔥 (16 words)
LinkedIn Summary (45 words): Nithin & Nikhil Kamath founded Zerodha in 2010, scaling to 16M clients & ~Rs 8,000 Cr FY25 revenue without VC funding. Amid 40% Q1 dip, they target Rs 10,000 Cr FY26 via lending. Net worth: $5.1B combined. Pioneers of discount broking. #FintechIndia #Zerodha #NithinKamath #StartupSuccess
Last Updated on Friday, October 17, 2025 6:42 pm by Siddhant Jain
About The Author
