Congrats Kamat Bros make it to Forbes Billionaire list

General
1

Congratulations guys… @nithin

You guys realised that in the California gold rush, the people who actually made money were the people selling tools to prospectors. Glad it’s you guys, though.

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2

I have applied for the IPO, when can I see the shares in my demat account :grin:

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You think promoters will let you make any money. Especially these market wizards. They will sell you overpriced IPO when the bull markets are at their peak.

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Are you talking about Zerodha, or in general? :thinking:

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5

my 50k brokerage is in there somewhere.

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6

I doubt if any single person in this forum can disagree to what @ANKIT_T said

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i guess it’s in general

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Sometimes, price appreciation happens even if the IPO is perceived to be overpriced, the reasons could be many, and valuation is subjective.

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9

When I read your replies I feel like you are an auditor.

You tell us what we already know. :joy::joy:
No offence. :hugs:

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Who are you quoting? :face_with_spiral_eyes:

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If the target is me, I’d like to inform you that I’m not an auditor or CA. I’m just a post graduate in commerce.

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Zerodha.
Kamath Bros are market experts. If they decide to bring an IPO in future, they would want to get the maximum possible. Every promoter does that. And that would mean an overpriced IPO

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13

Not every IPO. There are companies which when got listed even at valuations perceived to be high, went even higher.

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14

This list is based on paper valuations that can come and go quickly. :slight_smile: Both of us don’t care about this. If we had a way, we would have done it in stealth without getting on any such list.

While it might seem like we planned the timing, we got lucky to be at the right place right time with the right products and initiatives when markets expanded. But it took a long time. I started trading in 1998, we grew quickly post-2018, so it took almost 20 years to get lucky.

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I shared this in 2021 when we could have IPO’d at some large valuation number but didn’t. Maybe it will answer your question.

https://twitter.com/nithin0dha/status/1459073986504003587?lang=en

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16

@nithin

Discount Brokerage or Kite Web. Which one helped Zerodha to get this success ?

For me it is Kite Web. The Minimalist architecture helps traders to stay calm.

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17

There are many reasons, but discount brokerage is, I think, not in the top 5 reasons. The main reasons are the products (Kite mainly) and the philosophy of never doing anything to the customer that we don’t want to be done to us. By the way, in a low-cost business model, you need to be able to scale and then work well at that scale to do well. So the fact that over the last few years, we can handle as many orders from as many customers without any issues is also a reason that should be right at the top.

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Yeah, that’s what I meant. You guys were traders, who went on to create a brokerage firm itself. I am saying that was smart pivot. Bringing integrity to the brokerage business was what cemented your success, IMO.

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While I agree to the other factors, I dont think you would have achieved 1/3 this success if you charged Rs. 20 per lot :stuck_out_tongue: Infact I dare say you would lose atleast 30% of your best customers within a year if you did that now :wink:

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When the business started, the main difference from the competition was pricing. So yeah, if we hadn’t done a flat fee per trade, there would be no Zerodha. But post-2015, almost everyone is a flat fee per trade broker, so post that, pricing hasn’t been a differentiator.

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