Zerodha founders and brothers Nikhil Kamath and Nithin Kamath collectively received a total compensation of Rs 195.4 crore, with each taking home Rs 72 crore as their annual salary in the financial year (FY) 2022-23, according to a report by Entrackr, an online newspaper which covers startups and entrepreneurial-related developments.
The valuation of Zerodha, an online stockbroker founded in 2010, stood at an impressive USD 3.6 billion, or approximately Rs 30,000 crore, as self-assessed by the company, reflecting its strong position in the brokerage market.
Seema Patil, Zerodha's whole-time director and Nithin Kamath's wife, took home Rs 36 crore, while Chief Operating Officer (COO) Venu Madhav took home Rs 15.4 crore in remuneration, Business Today reported, citing CNBC-TV18.
Zerodha's employee benefits cost saw an increase of 35.7 per cent to Rs 623 crore from Rs 459 crore in FY22. The employees, including directors, received a total salary of Rs 380 crore from the company. Of the Rs 623 crore, Zerodha spent Rs 236 crore on ESOPs (Employee Stock Ownership Plans), which were settled in cash, according to Entrackr.
Recently, Zerodha faced technical issues in the past two months. Nithin Kamath, on Tuesday, publicly apologised on X and said the glitches had affected between 5 per cent to 20 per cent of its active customers.
"In the business updates post I shared in August this year, I mentioned how we hadn't had any large tech issues for a couple of years. Unfortunately, we have had two episodes in quick succession in the last two months, affecting between 5 per cent and 20 per cent of our active customers," he wrote.
Explaining the reason for the technical problems, Nithin Kamath said, "The issues on November 6 and December 4 were triggered due to edge cases with our external dependencies. This is no excuse, and I understand that, as a platform, we are responsible for all the issues you face. But I wanted to share with you what went wrong and what we are doing about it."
In FY 2023, Zerodha reported a 38 per cent increase in revenue, amounting to approximately Rs 6,875 crore, compared to the previous fiscal year. Profits after tax also saw a substantial rise, with a 39 per cent growth, reaching around Rs 2,907 crore.
Zerodha's success in FY23 can be attributed to its strong customer base and market presence. As of August 2023, the firm had around 6.3 million active clients, representing about 20 per cent of India's overall trading customers. The company was adding close to 250,000 customers every month, showcasing its dominance in the retail brokerage sector.
The online stockbroker held a market share of 19.6 per cent at the end of FY23 and its daily average turnover, according to the National Stock Exchange (NSE), was Rs 2,000 crore.