Online stockbroking firm Zerodha on August 26 said that its user base has crossed one crore customers, the largest among its peers.

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In a series of tweets, Zerodha Founder and CEO Nithin Kamath explained how online account opening with Aadhar helped Zerodha reach the one-crore customer base and thanked the government, SEBI, exchanges, and depositories for this achievement.

Kamath shared a chart along with his tweet that said: "Looking back, the biggest tipping point was AADHAR for online account opening. Can't thank the Government & SEBI & Exchanges & Depositories enough for making this happen. A few things we did that had unintended benefits."

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We, @zerodhaonline, just got to 1 crore customers.Looking back, the biggest tipping point was AADHAR for online account opening. Can't thank the Government & SEBI & Exchanges & Depositories enough for making this happen.

A few things we did that had unintended benefits. 1/5 pic.twitter.com/2V0FdmPlNb— Nithin Kamath (@Nithin0dha) August 26, 2022

Founded in 2010, Zerodha Broking is a financial services company that offers retail as well as institutional broking, currencies and commodities trading, mutual funds, and bonds. Over one crore clients place millions of orders every day through its platform, contributing more than 15 percent of all Indian retail trading volumes.

"The plan to rely on word-of-mouth & have a single offering for all customers had benefits that we never thought of at the start. Economies of scale kicked in not just in tech but across support & ops — the team size has remained the same as we went from 20lk to 1cr clients," he tweeted.

He said, "When customers are introduced by family or friends who are existing clients, they also tend to help bridge the knowledge gap about the platform at the start. A huge challenge for consumer apps in a complex business like ours. Can't thank our customers enough for this."

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Kamath, who is a billionaire now, talked about charging account opening fees for customers, "We started by charging account opening fees to cover costs. We soon realised that the fee also created a sense of seriousness; trading is risky & isn't like installing a gaming app. Also, only those with intent open accounts, reducing compliance costs of inactive accounts."

He further said, "Don’t do unto others what you don’t want to be done unto you, has been at the core of everything we do. This meant no spam calls, emails or push notifications to open accounts or trigger trades. This also helped us gain credibility, the biggest challenge in broking business."

(Edited by : Shoma Bhattacharjee)

First Published:Aug 26, 2022 8:05 PM IST