Zerodha, India's biggest brokerage, faces users' ire after glitches

India's biggest retail brokerage firm, Zerodha once again faced the ire of users following glitches earlier on Thursday. Several users of the Zerodha website and its Kite app took to social networks to vent their anger after many of them failed to place their orders.

"There seems to be an issue with Zerodha as orders are not being executed successfully. The orders have been in an open pending state for the past 10 minutes," one user tweeted earlier today.

Another complained that the Zerodha orders were not being cancelled.



Many have also shared screenshots of the glitches, like this:


Meanwhile, Zerodha issued a statement on the issue.

"Due to a disconnection of one of our exchange lines, a few customers' orders were in the "open pending" state. They are now lapsed/cancelled, and these customers can place new orders now. Despite having multiple connections to the exchange, a disconnection on one line caused some of our customers' orders to go into the pending state. This issue has since been resolved," Zerodha said in the statement.

Last November, Zerodha users complained of similar issues too.

Zerodha is owned by billionaire brothers Nithin and Nikhil Kamath.

It has a 12 million strong customer base, of which 2.5 million are F&O users and 1.5 million are active F&O traders who punch orders at least once a month.

Zerodha CEO Nithin Kamath earlier this year claimed that the discount brokerage's monthly new account openings are back to March 2020 levels. "The mean reversion in new accounts means revenues will also revert to the mean, but with a lag. Trading volumes and stockbroking are extremely high beta and can drop off just as quickly as they go up," he said while describing broking as a cyclical business that tends to revert to the mean.

The bootstrapped Bengaluru-based startup, which disrupted the broking industry in India, now plans to venture into the asset management business as well by focusing mostly on passive products.