Zerodha, an online stock broker, was founded in 2010 by Nikhil Kamath (L) and Nithin Kamath (R). (Photo: Nikhil Kamath Instagram)

Zerodha Founders’ Salary Soars to Rs 195.4 Crore: FY2022-23 Financial Report Unveiled

In a financial revelation that underscores the thriving success of Zerodha, founders Nikhil Kamath and Nithin Kamath collectively received a staggering sum of Rs 195.4 crore as their annual salary for the fiscal year 2022-23. This disclosure, sourced from a report by Entrackr, a renowned online newspaper covering startup and entrepreneurial developments, sheds light on the financial prowess of the online stockbroker.

As per the report, the Kamath brothers, at the helm of the company since its inception in 2010, each took home Rs 72 crore in the last financial year. Seema Patil, the wife of Nithin Kamath and Zerodha’s whole-time director, wasn’t far behind, earning a significant Rs 36 crore.

The valuation of Zerodha, a key player in the online brokerage market, reached an impressive USD 3.6 billion (approximately Rs 30,000 crore) as per the company’s self-assessment, reflecting its robust position in the industry.

Despite these financial milestones, the report also notes the rise in Zerodha’s employee benefits cost by 35.7 percent to Rs 623 crore, with Rs 236 crore allocated to Employee Stock Ownership Plans (ESOPs). This indicates a commitment to rewarding and retaining talent within the organization.

Recent technical glitches faced by Zerodha over the past two months were publicly acknowledged by Nithin Kamath, who issued a public apology, citing issues affecting 5 to 20 percent of active customers. Kamath detailed the problems, attributing them to edge cases with external dependencies and reassured users that measures were being taken to address and prevent such issues in the future.

Financially, FY 2023 has been exceptionally favorable for Zerodha, with a reported 38 percent increase in revenue, reaching around Rs 6,875 crore. Profits after tax also witnessed substantial growth, soaring by 39 percent to approximately Rs 2,907 crore.

The success of Zerodha in the fiscal year can be attributed to its strong customer base, boasting around 6.3 million active clients as of August 2023. This represents about 20 percent of India’s overall trading customers, with the company consistently adding close to 250,000 customers monthly, showcasing its dominance in the retail brokerage sector.

Closing FY23 with a market share of 19.6 percent and a daily average turnover of Rs 2,000 crore, Zerodha continues to be a formidable force in the online brokerage landscape. The financial report reaffirms the company’s position as a leading player in the market, backed by its continuous growth and unwavering customer trust.

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