Equity investors using Zerodha have achieved remarkable financial success over the past four years, collectively realizing profits amounting to Rs 50,000 crore. Furthermore, these investors are currently sitting on unrealized profits worth Rs 1 lakh crore, according to Nithin Kamath, CEO of Zerodha, who shared this information in a post on X (formerly Twitter).
This substantial figure of unrealized profits is based on an Assets Under Management (AUM) of Rs 4.5 lakh crore, indicating the impressive growth and performance of the investments handled by Zerodha. Kamath highlighted that most of this AUM has been accumulated within the last four years, showcasing the rapid growth and effectiveness of Zerodha’s platform in managing and growing investor wealth.
Nithin Kamath emphasized the extraordinary expansion of the market post-COVID, noting the significant increase in the assets held by Zerodha customers. He pointed out that Zerodha clients now hold approximately Rs 4.5 lakh crore worth of assets in their demat accounts. This surge in market activity and asset accumulation reflects a broader trend of increased participation by retail investors in equity markets during and after the pandemic.
The shift towards digital and online trading platforms like Zerodha has facilitated this growth, making it easier for individuals to invest and manage their portfolios from the comfort of their homes. The post-COVID era has thus been marked by a democratization of market participation, with more individuals gaining access to and benefiting from equity investments.
Growth in Client Base and Market Share of Zerodha
Zerodha has seen a significant increase in its client base, which now stands at over 1.3 crore clients. These clients contribute to more than 15 percent of the daily retail order volumes in India, highlighting Zerodha’s substantial role in the Indian equity market. In April, 1.5 percent month-on-month increase was recorded in its client base, reaching 7.4 million users.
However, despite this impressive growth in clients, Zerodha experienced a slight decline in market share, dropping by 20 basis points to 17.7 percent. This minor dip in market share indicates the highly competitive nature of the market environment, even as the company continues to attract a growing number of users. The competition among trading platforms is fierce, and maintaining a dominant market share requires continuous innovation and customer satisfaction.
ALSO READ: EV industry optimistic under Modi 3.0 for sustained policy support
Trends in Demat Accounts Across India
A report by Motilal Oswal Financial Services provided further insights into the broader trends in the Indian equity market, particularly the surge in the total number of demat accounts. According to the report, the total number of demat accounts in India reached 154 million, reflecting a significant increase in retail investor participation. Despite this overall growth, the number of new account additions remained stable at 3.1 million per month, consistent with the average monthly additions throughout the fiscal year.
This stability suggests a sustained and growing interest in equity investments among retail investors, influenced by favorable market conditions and the convenience of online trading platforms like Zerodha. The consistent growth in demat accounts highlights the increasing financial literacy and investment awareness among the Indian populace.
The Way Ahead
Zerodha has achieved significant success in growing its client base and managing substantial assets, leading to impressive realized and unrealized profits for its investors. The post-COVID period has seen unprecedented market expansion, with Zerodha playing a pivotal role in facilitating increased market participation among retail investors. While the platform faces intense competition, resulting in minor fluctuations in market share, the overall trends indicate a robust and enduring interest in equity markets among Indian investors.
Zerodha’s ability to attract and retain a large number of clients, coupled with the broader growth in demat accounts across India, underscores the importance and effectiveness of digital trading platforms in shaping the future of investments in the country.
Zerodha’s journey reflects a broader shift towards greater accessibility and inclusivity in the financial markets, empowering a diverse range of investors to participate and benefit from the equity market’s growth. As the platform continues to innovate and adapt to the evolving needs of its users, it is poised to maintain its significant role in the Indian financial ecosystem, driving further growth and success for its investors.
