Zerodha co-founder Nithin Kamath: Its difficult to build broking business without technology

Nithin Kamath on broking business: There is bullish momentum in India currently, but making money is still difficult, said Nithin Kamath, co-founder and chief executive officer (CEO) of broking firm Zerodha, in an exclusive interaction with Zee Business' Managing Editor Anil Singhvi. Kamath further said that Zerodha's business depends on Nifty returns, and they have never resorted to any shortcuts in their business.

Kamath added that Zerodha receives orders worth Rs 1 crore every day and said it's difficult to build a broking business without technology. Zerodha can use artificial intelligence (AI) in customer support going forward, Kamath said. The Bengaluru-based entrepreneur added that they adapt their business in accordance with the change in regulations.

Kamath further said that during COVID, there was a steep rise in retail traders given the bullish market momentum. The company's major staff are between 25-45 years of age. Kamath initially used to run the stock market community on Yahoo Messenger. In the early days, the company's focus was on transparency and low costs. In 2013, Zerodha transformed from a financial firm to a fintech firm.

In April, Zerodha said it has formed a joint venture with Amazon-backed wealth management firm Smallcase to build an asset management company. The capital markets regulator Sebi's approval has already been received for setting up the joint venture.

"While awaiting the final approval of our AMC (mutual fund), we asked if we should build it ourselves or collaborate. Given the 6+ years of experience that @smallcaseHQ has in building investment products, it made perfect sense to create a joint venture (JV) to build the AMC," Kamath tweeted.