Bengaluru-based stock broking platform Zerodha has experienced a remarkable surge in its valuation, reaching approximately USD 3.6 billion (Rs 30,000 crore) in recent buybacks, as revealed by the company’s founder, Nithin Kamath. This valuation reflects the substantial growth and financial performance of the bootstrapped startup.
In the fiscal year 2023, Zerodha reported a total income of Rs 6,875 crore, marking an impressive 38 percent increase compared to the previous year’s income of Rs 4,964 crore. Furthermore, Zerodha’s net profit saw a substantial rise of 39 percent, reaching Rs 2,907 crore in FY23 from Rs 2,094.3 crore in FY22.
Addressing the speculation surrounding Zerodha’s valuation, Nithin Kamath, Co-founder and CEO of the platform, emphasized that the company’s valuation is pegged at Rs 30,000 crore (approximately USD 3.6 billion). Kamath clarified that Zerodha bases its valuation on factors such as long-term growth, earnings (PAT), and market conditions. He dispelled notions of valuation estimates as high as Rs 1 lakh to Rs 2 lakh crore, emphasizing the consistency in their approach to valuation.
Zerodha derives its revenue primarily from selling brokerage services, onboarding new users, and providing premium technology products like the Kite Connect API. The platform’s impressive financial performance underscores its growing prominence in the stock broking industry.
