Zerodha Case Study: Making Barrier-Free Trading Processes
Zerodha is a company that has made all the trading processes barrier-free. It is the very first discount brokerage company in India. Zerodha has established itself in this digital world briefly and can flourish in the market. This company has purely grown on the principle of technology while giving valuable services to the customers.
The company started its journey with a team of around five people, and today, it employs more than 1200 people. The unique idea behind the whole project of Zerodha, along with the intelligent use of technology, has taken up this startup to a whole new level of establishment in the market. Zerodha is the number 1 stockbroker in India. Moreover, it is the most popular and the most prominent online broker that offers services to invest in currency, equity, IPO, and direct mutual funds. It is one of tha fascinating business case studies present in the Indian startup ecosystem as it went from 0 to 1 billion dollars in valuation in just 10 years.
On one side, when the tech companies are on a cash drain wherein they are incurring million-dollar losses, Zerodha has been very elegantly profitable with a profit of more than four hundred crores; it was done without zero funding and zero marketing.
How is it possible that Zerodha has achieved something so incredible with zero funding and zero marketing?
The main thing to focus on is that Zerodha has successfully earned billions with zero investment in this noisy world where the other companies are spending dollars to survive in the market.
The answer to this question comes from one of the most legendary entrepreneurs in the Indian startup ecosystem Kunal Shah. In 2016, Kunal Shah delivered an INKTalk wherein he proposed a fascinating theory that more or less explained the root cause of the success of some of the most prominent startups in the world. According to Kunal Shah, in this world, many systems have a ton of inefficiencies and hurdles that often prevent ordinary people like you and me from moving into a more efficient system. But we are human beings, and once we find an efficient system, we have this innate ability to move on from where we never come back. As a result, if an entrepreneur can build a startup so that he can fix these inefficiencies and help ordinary people overcome the hurdles, they will be able to make a startup.
And once this thing is done, that startup will give three massive superpowers, which will boost that startup to another level altogether. These three superpowers are high consumer tolerance, unique brand proposition, and an irreversible shift.
A straightforward example closer to this is Whatsapp; if you see all of us are using WhatsApp, but none of us is using WhatsApp because of an advertisement. So if you look at WhatsApp as a system, back then, before WhatsApp, even to send a local text, we used to think twice because one message used to cost us 1 rupee. Even to make a regular call, we used to think twice because we would run out of balance.
What did Zerodha do right?
Continue reading on procommun.com