Sun Oct 13 04:02:33 UTC 2024: ## Zerodha Aims to Become a Bank, Faces Challenges from SEBI and Competition
**MUMBAI:** Online share trading platform Zerodha, founded by brothers Nikhil and Nithin Kamath, has seen a surge in popularity and profit in recent years. In FY24, the company recorded a 62% jump in profit, reaching ₹4700 crore, and a 21% rise in revenue, hitting ₹8320 crore.
Despite this success, the Kamath brothers are setting their sights on a new goal: transforming Zerodha into a bank. Nikhil Kamath recently expressed his serious intention to pursue this, despite facing hurdles in acquiring the necessary license. He mentioned the challenges posed by competition from established players in the financial sector, citing the abundance of resources available to them compared to Zerodha’s smaller team.
In addition to securing a banking license, Zerodha is exploring avenues in the public market investment and insurance sectors. The company’s CEO, Nithin Kamath, highlighted another major obstacle – the ever-changing regulations from the Securities and Exchange Board of India (SEBI). New rules regarding futures and options (F&O), due to come into effect in November, could potentially impact 30% of Zerodha’s overall business and 60% of its F&O business. This regulatory landscape, coupled with competition, has prompted Zerodha to explore diversification beyond stock broking.
While Zerodha is currently the second largest player in the stock broking market, with a 17% share, it faces competition from Groww, which holds a 25.1% market share.
The Kamaths are determined to overcome these challenges and build Zerodha into a prominent player in the banking and financial sectors, showcasing their ambition to expand beyond their core business.
First Piper 