Q.

1 What is the revenue source of 'Zerodha', apart from the conventional

brokerage revenue?

Ans:

1. Zerodha earns Flat Rs. 20 & 0.01% brokerage whichever is lower on brokerage
intraday.

2. Their operating cost is also very low. As with traditional brokers there were a lot of
logistic issues like high overhead cost, staff, offices etc. But, Zerodha saves a lot on
this cost and giving back brokerage is a very small part of their business, which
results in high revenues.

3. Zerodha is giving lucrative discounts which attracts a lot of people. However, they
are using modern technologies which results these discounts to be a very small part
of their profit. This results in high revenues for Zerodha.

4. Zerodha launched programs like Varsity which educate customers about the
basics of stock trading and how Zerodha can be effective. This increases customer
acquisition at Zerodha and increase Zerodha Revenues from their intraday trading.

Q.2 What is the business model of a 'Payment Bank' (for e.g. Paytm)?

Ans:

1. Helps in transfer of funds to other parties.

2. Generate revenue by commission or through Escrow account
3. Leverage technology platforms to reach mass audience. Availability and
affordability are the main pillars.
4. Channels to earn revenue are Payment Banks website, mobile application,
vendor sites.
5. Increase security to payment systems. Most of the expenses are for customer
acquisition.