Zerodha CEO Nithin Kamath’s Revelation (Image Source: iStockphoto)
India’s financial landscape is undergoing a seismic shift post-pandemic, as revealed by Nithin Kamath, CEO of Zerodha. With retail investors flocking to the capital markets, demat accounts now hold a staggering Rs 4.5 lakh crore in assets.
Despite concerns over valuations, domestic markets have been scaling new heights, with the combined market cap of listed stocks hitting Rs 400 lakh crore. The pace of growth is remarkable, with the last Rs 100 lakh crore added in just nine months. Notably, smaller stocks have been the frontrunners, offering multibagger returns and fueling the market fervor.
Zerodha CEO Nithin Kamath wrote on X, “It’s unreal how much our markets have expanded post-COVID. @zerodhaonline customers now hold ~ Rs 4.5 lakh crores worth of assets in their demat accounts.”
The journey to this milestone has been swift, with India’s market cap doubling in just over two years, propelled by robust retail participation. Demat accounts have swelled to 151 million in March 2024 from 36 million in March 2019, indicating a significant uptick in investor engagement. Over the past five years, cumulative domestic equity inflows have amounted to an impressive USD 92.7 billion.
According to The Economic Times report, Zerodha, a key player in this landscape, has witnessed meteoric growth, albeit plateauing in revenue and profitability in FY23. Despite this, the platform clocked a substantial revenue of approximately Rs 6,875 crore and a profit after tax of Rs 2,900 crore in the previous fiscal year.
Looking ahead, analysts foresee the momentum persisting, with pivotal events such as central bank rate actions and the outcome of elections both domestically and internationally steering market dynamics. The buoyant trajectory is poised to continue, underpinned by burgeoning retail interest and macroeconomic factors shaping investor sentiment.
