An employee, seen through reflections on a glass window at a brokerage firm in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Zerodha Adds ‘The Missing Piece’ To Achieve Growth With IDFC Bank Partnership

India’s largest brokerage house Zerodha is banking on its newly-built partnership with the Mumbai-based IDFC Bank Ltd. as the discount broking firm plans expansion into new markets.

“The missing piece in what we have to offer is banking,” Nithin Kamath, Zerodha’s co-founder and chief executive officer told BloombergQuint, adding that the plan is to offer a three-in-one product, where the bank is powered by them (IDFC Bank) and the broking and the trading account is powered by us.

Zerodha, which recently beat ICICI Securities Ltd. to become the nation’s biggest brokerage firm, expects to witness a 30 to 50 percent growth in revenue and profit, thanks to its large client base.

Kamath said the company has been working towards adding first-time investors to its community base. He added that about 65 to 75 percent of the 89 lakh active traders on its forum, as recorded by the end of 2018, are the new investors.

Other Highlights:

  • Reduce reliance on future and options and intraday equity traders.
  • Says Zerodha has recently received the non-banking financial company license and would now begin offering loan against shares.

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