Zerodha, India’s largest brokerage firm, has obtained the necessary approval from Sebi to establish its own Asset Management Company (AMC), thus opening the path for the launch of its independent mutual fund venture. The company, co-owned by Nithin Kamath and Nikhil Kamath, has entrusted Vishal Jain with the responsibility of steering the success of this venture. Nithin Kamath, Zerodha’s CEO and founder, announced this significant milestone through his Twitter account.

Zerodha has forged a strategic partnership with Smallcase, a wealth management company, in order to create a collaborative synergy. Nithin Kamath has expressed his aspiration to engage with one crore investors (equivalent to ten million) through this initiative. The company is poised to enter into competition with Jio Financial Services, spearheaded by Mukesh Ambani, which has aligned itself with Blackrock, the world’s largest asset management firm. Anticipating a demerger, Ambani’s company is expected to initiate its own mutual fund operations.

In a tweet, Nithin Kamath shared, “We have just received final approval for ZerodhaAMC. We are partnering with SmallCase for this endeavor. Our decision to venture into the mutual fund arena was propelled by two pivotal factors. First, we acknowledged that the primary challenge and opportunity within the Indian markets revolve around limited participation. Despite substantial growth over the past three years, the aggregate count of unique mutual fund and equity investors stands at approximately 6-8 crore. Second, we recognized the imperative to offer uncomplicated products to the next ten million investors, with mutual funds emerging as the ideal investment vehicle. Our emphasis will be on index-based offerings, creating straightforward funds and ETFs accessible to all investors for diverse financial objectives.”

While Jio Financial Services boasts an impressive valuation of Rs 1.65 lakh crore, Zerodha has solely relied on bootstrapping for its expansion.

Who is Nithin Kamath?

Zerodha was established by Nithin Kamath and Nikhil Kamath in 2010. The company serves a clientele of 10 million individuals.

The duo is also the driving force behind Rainmatter, a venture capital fund, and True Beacon, an investment management firm.

In 2023, they found themselves included in Forbes’ billionaire list. Nithin Kamath’s net worth was estimated at $2.7 billion (Rs 22,400 crore), while Nikhil Kamath’s net worth reached $1.1 billion.

Nithin Kamath lacks the prestigious degrees often associated with institutions like IIM or IIT, and he had no fallback plan. He acknowledged that possessing such degrees might have provided an alternate job avenue in case of failure. However, in the absence of formal professional education, his entire future hinged on the pursuit of his entrepreneurial vision.

Nikhil Kamath even made the decision to leave school before completing his education.

Hailing from Karnataka, the Kamath brothers have established a substantial enterprise, consistently generating profits surpassing Rs 2000 crore.

Recently, the siblings became participants in The Giving Pledge initiative.

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