Zerodha Capital, the non-banking finance arm of stock broking major Zerodha, reported a net profit of Rs 12.5 crore and total revenue of Rs 36 crore in the fiscal year ended March 2025.
While its revenue has more than doubled from around Rs 17 crore in FY2024, its net profit grew 78% from Rs 7.2 crore last year.
Through Zerodha Capital, the stockbroker offers credit products, like loans against securities. Investments in stocks, exchange traded funds (ETFs) and mutual funds can be used as collateral for loans on the platform.
“We have a bouquet of around 1,300 securities, and we offer loans to investors who have those securities,” said Abhilash SR, head, Zerodha Capital. “We are growing this product carefully and in a steady manner,” he added.
Zerodha’s foray into the credit business comes at a time when rival Groww has scaled up its credit operations. The Peak XV Partners-backed startup offers consumer durable loans and personal loans. The company already had a loan book of Rs 965 crore in September 2024.
Zerodha Capital, which has a net worth of Rs 175 crore, is currently offering loans with an average ticket size of Rs 6 lakh. The company has raised around Rs 250 crore from banks and other NBFCs, and is operating with a debt-to-equity ratio of 1.4.
“We will not get into unsecured lending, we will launch term loans in the next couple of months,” Abhilash told ET.
Currently, the product is available only for Zerodha’s clients, but the company is in the process of integrating its systems with mutual funds registrar, Cams, to start lending to other clients as well.
Zerodha Capital's customers can borrow anywhere between Rs 25,000 and Rs 10 crore, and the NBFC allows a loan-to-value ratio of 45%. This means an investor can get loans worth Rs 45 for shares worth Rs 100.
In November 2024, Nithin Kamath, chief executive officer, Zerodha, had told ET that Zerodha Capital was already disbursing around Rs 80 to 90 crore every month. The central bank had awarded the NBFC licence to Zerodha in 2021. The company only started scaling up its credit play from 2023 onwards.
While its revenue has more than doubled from around Rs 17 crore in FY2024, its net profit grew 78% from Rs 7.2 crore last year.
Through Zerodha Capital, the stockbroker offers credit products, like loans against securities. Investments in stocks, exchange traded funds (ETFs) and mutual funds can be used as collateral for loans on the platform.
“We have a bouquet of around 1,300 securities, and we offer loans to investors who have those securities,” said Abhilash SR, head, Zerodha Capital. “We are growing this product carefully and in a steady manner,” he added.
Zerodha’s foray into the credit business comes at a time when rival Groww has scaled up its credit operations. The Peak XV Partners-backed startup offers consumer durable loans and personal loans. The company already had a loan book of Rs 965 crore in September 2024.
Zerodha Capital, which has a net worth of Rs 175 crore, is currently offering loans with an average ticket size of Rs 6 lakh. The company has raised around Rs 250 crore from banks and other NBFCs, and is operating with a debt-to-equity ratio of 1.4.
“We will not get into unsecured lending, we will launch term loans in the next couple of months,” Abhilash told ET.
Currently, the product is available only for Zerodha’s clients, but the company is in the process of integrating its systems with mutual funds registrar, Cams, to start lending to other clients as well.
Zerodha Capital's customers can borrow anywhere between Rs 25,000 and Rs 10 crore, and the NBFC allows a loan-to-value ratio of 45%. This means an investor can get loans worth Rs 45 for shares worth Rs 100.
In November 2024, Nithin Kamath, chief executive officer, Zerodha, had told ET that Zerodha Capital was already disbursing around Rs 80 to 90 crore every month. The central bank had awarded the NBFC licence to Zerodha in 2021. The company only started scaling up its credit play from 2023 onwards.
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