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Fintech Start-Up Zerodha Nearly Doubles Profit, Registers 80 Per Cent Surge In Revenue

Along with revenue and net profit, the Nikhil Kamath-led start-up witnessed a rise in its expenses

Fintech Start-Up Zerodha Nearly Doubles Profit, Registers 80 Per Cent Surge In Revenue
POSTED ON January 10, 2023 9:18 AM

Bengaluru-based stock-broking platform Zerodha has nearly doubled its net profit in the financial year (FY) 2022. The company's operating revenue also increased by 80 per cent, the regulatory filings with the Ministry of Corporate Affairs ( MCA) revealed.  

In FY22, it registered Rs 2,094 crore as net profit, compared to Rs 1,122 crore in the previous financial year ( FY21). Nearly 87 per cent of the surge has been reported. The operating revenue also increased by 82 per cent to Rs 4,963 crore in the same financial year. 

Zerodha earns revenue by collecting brokerage fees and commissions. Its fees and commission income reached Rs 4,128 crore in this FY from Rs 2,252 crore in the previous FY. Additionally, it earned Rs 614 crore from interest income. 

Along with revenue and net profit, the Nikhil Kamath-led start-up witnessed a rise in its expenses. In FY22, its net expenditure increased by 71 per cent to Rs 2,164 crore. The employee benefit expenses rose by 45 per cent to Rs 459 crore. 

Talking about the latest development, Kamath said, "While we are on track to do as much revenue and profits as last year, even this year, we think we will be unable to match the current revenues and profitability from the next financial year for a few more years."

"This is not just because we see a dip in new account openings and a drop in the bull market momentum, but also because we think we have temporarily hit a plateau in terms of the target market, customers who have sufficient savings to invest in the markets and an ability to generate revenue for the brokerage firm. The business will also most likely get impacted due to the changing regulatory landscape, where, among many things, the working capital requirements are going up quickly," he added. 

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