Zerodha valued at around $3.6 billion by its founders

economictimes.indiatimes.com:

Zerodha values itself at around Rs 30,000 crore, or approximately $3.6 billion. While the Bengaluru-headquartered company has never raised private capital, it makes public its valuation estimates for its employee stock options buyback programmes.

On September 26, Zerodha announced an overall revenue of Rs 6,875 crore for fiscal 2023, and a profit after tax of Rs 2,900 crore. Taking to LinkedIn, Nithin Kamath, chief executive officer of Zerodha, said he values the company at 10 to 15 times of its PAT.

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Kamath justified the calculation saying he expects Zerodha to grow at a rate of 10-15% over the long term.

“Why only 10 to 15%? As I mentioned in our post recently, the problem with trying to grow fast is that it is very hard given some of our core philosophies at Zerodha, like no spam, no revenue or sales targets, no tracking customer data to push people to do more, no spending on acquiring customers, etc,” Kamath wrote on LinkedIn.


Citing the need for caution while looking at valuing a stock broker, Kamath said that one circular from the market regulator could result in slashing off its revenues by more than 50%.

Also, customer engagement on these platforms is a definition of a market ‘bull run’ and Kamath said that any downturn in the markets can slash customer engagement with the platform.

“Almost every bull run in the markets creates the