Sachin Jha, a Bengaluru-based techie, had to close his account with Zerodha due to his wife’s new job. However, he did not expect to receive a direct response from the company’s CEO, Nikhil Kamath, after this decision. Sachin sent a “final email” to the CEO, in which he explained the reason for closing his account with the company. He expected no response, but Nikhil Kamath responded in just 10 minutes, which was completely unexpected for him.
Immediate action offered in response
Sachin Jha said that Kamath immediately responded to his email and acknowledged that Zerodha needed some improvement with its banking facilities. He said, “We are fixing it with the banks” and asked his workplace to partner directly with compliance. Nikhil Kamath also shared plans to rebuild trust with institutions. This reactive move has given Sachin Jha renewed respect for the Zerodha team.
Zirodha’s Growth and Challenges
Zirodha’s lack of a traditional banking license is both an advantage and a disadvantage. On the one hand, not having a banking license allowed Zerodha to pioneer the discount broking model in India, leading to significant financial growth. On the other hand, without it, the company has not been able to expand its range of financial services, especially in offering products such as banking, lending and insurance.
Nikhil Kamath’s Disappointment and Zerodha’s Vision
Zerodha co-founder Nikhil Kamath, who aimed to build a bank, is disappointed by this regulatory hurdle. “We really wanted to become a bank, but despite all our efforts, we have not been allowed to,” he said. Despite this frustrating situation, Zerodha has successfully run its existing business, especially in the area of discount broking and investment services.
Zerodha’s financial performance growth
In FY24, Zerodha has recorded an impressive growth. The company reported a 62 percent increase in profit to Rs 4,700 crore and a 21 percent increase in revenue to Rs 8,320 crore. This result is a testament to the company’s success story and constant innovation. However, the path to reach this destination is still full of some difficulties for Kamath, but his vision and dedication to the companies have inspired him to move forward on this challenging path.
