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This Article is From Dec 22, 2021

5 Hugely Profitable 'Unlisted' Indian Companies To Keep Your Eye On

5 Hugely Profitable 'Unlisted' Indian Companies To Keep Your Eye On
These companies are either market leaders in their respective domains or are growing fast.

As abundant liquidity engulfs the stock market, many companies are exploiting the IPO route to raise money at lofty valuations. 

However, a few companies are not doing so. Why?

Well there could be many reasons. Some of these could be the unwillingness of promoters to dilute their stake or the lack of a need to raise funds.

In this article, we take you through 5 such companies. 

These are not listed on the stock market. They are also either market leaders in their respective domains or are growing fast. 

#1  Zerodha 

Zerodha is primarily engaged in the business of providing equity broking services to retail customers. 

It also offers other financial assets ranging from mutual funds to government securities (g-secs) to invest in.

The company was established in 2010 by Nithin Kamath, a veteran trader. The startup was bootstrapped with funds Nithin had accumulated from trading for years. 

Back then, high brokerage and non-transparency were the problems that traders complained of. 

Nithin, a trader himself, understood the pain of traders better than anyone else. He saw this as an opportunity to break into a highly competitive industry. Thus, Zerodha was born. 

Zerodha pioneered the discount brokerage model in India and introduced practices such as “flat fee” on trading and “zero brokerage” on equity investment. 

Today, these practices have become the industry standard, making Zerodha India's largest broker with an active client base of more than 7.5 million. 

Interestingly, the company claims it hasn't spent a penny on advertising and marketing. It has acquired all its customers either through word of mouth marketing or through its popular education initiative Zerodha Varsity. 

Also, the company hasn't raised any money since its inception nor does it intend to in the near future. 

This indicates that the company is funding its operations through internal accruals which imply that the company is profitable unlike most startups. 

Recently, in a series of tweets, Nithin stated that the company has registered a profit of Rs 10 bn in the financial year 2021. This is more than twice the profit it had reported in the financial year 2020.

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