Zerodha's technical issue: Users express dissatisfaction over issues with order position

 Zerodha's technical issue: Users express dissatisfaction over issues with order position

On Tuesday, a technical issue at brokerage company Zerodha prevented some of its customers' order positions from appearing on the site. After transactions were completed, several broking platform customers stated that their orders were not reflected in their net positions, causing issues with order positions.

But the brokerage company said the problem had been resolved.

A technical problem prevented some of our users' locations from being shown. It has now been resolved. We apologize for the inconvenience," Zerodaha said on X, the previous Twitter platform.

In the meanwhile, Groww, a fintech firm, has surpassed Zerodha to become India's leading brokerage. Groww has 6.63 million active investors as of the end of September 2023, whereas Zerodha had 6.48 million, as previously reported by Mint, which cited NSE statistics.

Groww is owned by Nextbillion Technology Private Ltd. and was created in 2014. The organization offers mutual funds, investment management, tax preparation, and financial information services.

Angel One placed third with 4.86 million active investors within the same time, while Upstox finished in fourth with 2.19 million.

In contrast to the phenomenal growth it saw in the preceding two fiscal years, Zerodha witnessed slower development in both its top and bottom lines in the fiscal year that concluded in March 2023.

Zerodha's development decelerated in the 2023 fiscal year, despite a 39% increase in net earnings from ₹2,094 crore to ₹2,900 crore in the previous fiscal year. The company's sales increased from ₹4,694 crore in the fiscal year 2022 to ₹6,875 crore in the fiscal year 2023, a 35.5% growth. Nithin Kamath, the founder and CEO of Zerodha, published a lengthy piece on X a day after the company's financial figures were released, explaining why Zerodha's value is greater than expected.

"There is a lot of conjecture about @zerodhaonline's worth every time our financials are released. As Nithin Kamath said in the essay, "I think most assumptions are way higher than reality, which might sound counterintuitive for me to say."

He said that the core staff at Zerodha was primarily focused on creating a sustainable firm, and that paying attention to the constantly fluctuating values was a diversion.

Since notional values fluctuate based on market circumstances, none of the key team members have considered them from the beginning. It is distracting to concentrate on constantly shifting values. The goal has always been to create a robust company that doesn't ever need outside funding," he said.

The amount of earnings is determined by market circumstances and is a matter of chance. The capital market and stockbroking industries are high-risk and cyclical. Market bull runs almost always give rise to the delusion that activity and involvement will somehow continue to rise indefinitely. We often talk among ourselves that if markets collapse quickly, we may see a 50% decline in activity and income. In reality, we have no control over any of it. Indeed, just one circular may reduce our income by almost 50%, according to Nithin Kamath.

Taking into account the inevitable setbacks, we believe that given the size we are at, we may eventually expand by 10 to 15 percent," he said.