Today, 15 August 2020, marks Zerodha’s ten full-year operations. Thank you so much for all your help in this journey of becoming India’s biggest stockbroker from zero to zero. And yes, Happy Independence Day too!
I want to use this opportunity to share with you our vision for the future. Now I will tell about those people who play an important role in our journey of 10 years.
Nikhil – Nick (my younger brother) – Because of which we started our business on the first basis. The plan was to get Nick to start trading in 2010 with the little money that was left after starting Zerodha. It was our attempt to pass Zerodha’s balance with the same trading income. And we did the same way that we were able to survive. Nick is one of the best traders I know personally, he is now True Beacon Names is also running a hedge fund.
Doctor Kailash Nad, our Professor X- Our product development journey began when Kailash joined us in 2013. He does not like to be called the founder of Zerodha, but he will always be one of the founders of our company. This is the best developer I have met in my life. He and his 30-member team of men/women – that’s why our product has evolved so beautifully over the years. This post He recently got Zerodha Tech’s introduction to the world. This is great writing!
Venu, our head of operations – He joined us back in 2006 when we ran a small franchise of a large brokerage firm. When we started Zerodha, we had a short string budget, and we had the cheapest back office system to run our tasks. For many years, Venu and his team had to work night and night with this clunky system to make sure we had all the back office operations in our in-house software. By the way, this funny Prank video See what I drew in my old office in 2014 and it will show how calm and composed Venu is.
Hanan, Head of our customer relations: He was associated with us before starting Zerodha in 2008 and wanted to become a better trader. They stopped trading, but there is commendable energy inside them, due to which our excellent support team is built today.
Karthik “Guruji” Rangappa – They Varsity Has single-handedly made it one of the largest MOOC educational initiatives on the Capital Market. It was our customers when we were a franchise and we soon became friends. He ran his own startup before joining us in 2014. This is when Varsity was born with the goal of educating people about trading and markets in India and enhancing the capital market ecosystem.
And the whole family of Zerodha; Z Team, Sales People, Support, Tech, Account Opening Team, HR, Partner Team and Quality Team and all their uninterrupted hard work and jigyasa. Teams (and omnesis) and ERP Next of reinfinitive.
I want to thank the NSE for their platform of NOW; The only reason we were able to start our business in 2010 without technology. In addition, I also want to thank SEBI for removing their regulatory billionaires and allowing technology first brokers in the Indian broking industry to expand and expand in the market.
And once again, thank our customer for trusting us. Your support and goodwill has helped us grow and focus on our products and services without the need to spend resources and energy on our advertising. Thanks to this, we have never increased external funding and can continue to innovate without worrying about debt and obligations.
In this video, see our product journals of the last 10 years, made by our learning partner LearnApp.
What will happen next?
Our goal has always been to provide the best possible execution platform and education for investing and trading in markets. We started in India by taking forward the concept of “discount broking”, challenging the “status quo” model. Today, there is little discernible difference between “discount” and “full service” which is very high with the entire industry moving towards this price model. We then built a full suite of high-quality investment platforms in Bengaluru as a competitor to the world’s largest stockbrokers. We created a complete ecosystem of investment platforms through Rainmatter – an initiative that we are proud of. We have pioneered API broking, creating a number of standalone businesses that work tirelessly to help the retail investor community. We have released a high-quality financial education through Varsity, our blogs, trading Q&A, webinars on YouTube, our partnership with Finshots and so on, which is free and available to everyone whether it is our customers or not.
Ten years on with our technology, services, education, community and our startup partnerships, we have given birth to a whole interconnected universe of products and services, setting a very high bar and new benchmark for the industry. We have commoditized retail investment, making it accessible to millions of users at practically zero cost, equipped with high-quality equipment they would probably need to invest in markets is. All of this, while being completely bootstrapped, was completely inspired by our passion.
So, what comes next? Now that we think we have solved the problem of access and availability of equipment and tools, what will we focus on next? We need to find a way to help you achieve success while trading.
What is our focus now? – Nudge
Contrary to popular opinion, “winning” in trading is not just about identifying the right buy and sell price. Many traders run after strategies, strategies and tips in search of these “right deals”. However, to win in the long term, the most important art is to know risk management, understand what to do before, during and after the trade – and discipline and consistency to follow the rules. Even after identifying all the right opportunities to buy and sell, if you lose in trading, then you have not followed the rules of risk management properly. You can also achieve success with simple strategies if you follow these risk management rules without wavering.
So, what are these rules? This earlier post In, I talked about what it takes to win in trading. Keeping a stop loss, keeping records to know what works and what doesn’t, bet sizing, average down, etc. We have realized that many of these rules can be defined and incorporated within the trading platform. A platform that not only provides ease of trade but also helps in establishing discipline, which increases the chances of winning.
And that’s what we intend to focus on. We are slowly moving towards this goal by putting a kind of “assistant” on kites. We recently introduced Nudge “assistant” risk warnings when traders attempt to trade risky illiquid instruments and small stocks. It was first aimed at investors who took an interest in investing in markets during the COVID lockdown without suddenly knowing the risks of penny stocks, and often, falling victims of stock tips. Because of that nudge, small penny stock trading volume on kites has fallen by more than 50%, and is probably saving crores of rupees for our customers.
We are now working on building more general knowledge, safety and discipline rules in Nudge. What will happen to your profit loss if you ignore a nudge warning where a very risky betting is done? What if someone could study the compromise of discipline in their trading behavior? This is our vision for Nudge.
Of course, we will continue to build more equipment and utilities and improve our systems (have you noticed that the price ticks on kites have been accelerated more recently?) Without a doubt. We have built the best investment and trading apps and technical backbone and scale over the last ten years. Now, we are going to focus on helping our customers become better investors and traders.
Once again, thank you for your support over the past decade!