Zerodha was a discount broker built for one trader — it became India's largest

Nithin Kamath spent a decade as a day trader in India. He was good at it, but the traditional brokerage model was eating his profits. Brokerages charged a percentage of each trade — the more he traded, the more he paid. The system was built for wealthy investors, not active traders like him. The fees were a barrier he faced every day.

In 2010, Kamath decided to build a brokerage that removed the barrier. He and his brother Nikhil founded Zerodha — a combination of 'zero' and 'rodha' (Sanskrit for barrier). The model was radical for India: a flat fee of ₹20 per trade, regardless of size. Equity delivery trades were free. The company started with ₹2 crore from Kamath's personal savings and a friend's contribution.

The discount brokerage model was untested in India. Traditional brokerages charged a percentage — a discount model was seen as a niche for active traders who traded in high volumes. Kamath built it for himself and traders like him. He did not expect it to attract millions of casual investors. But the model worked. The low cost attracted everyone — not just active traders, but first-time investors who had never traded before.

By 2019, Zerodha had become the largest retail stockbroker in India by active client base, overtaking ICICI Securities. By 2022, it had nearly 10 million customers. In FY25, Zerodha reported revenue of ₹8,847 crore and a net profit of ₹4,237 crore. The company is bootstrapped and 100% owned by the Kamath family. A brokerage built for one trader had become India's largest stockbroker — and it happened because the founder solved his own problem.