On Monday, January 29, 2024, Zerodha, India’s second-largest online broking platform, faced a technical glitch that affected some of its users. The glitch caused intermittent issues with order placement on Zerodha’s Kite platform, which is used by millions of traders to buy and sell stocks, commodities, and currencies. The glitch lasted for about an hour, and was resolved by the company later in the day.
The glitch occurred at a crucial time, as the Indian stock market was witnessing a volatile session, with the benchmark Sensex index falling by over 1,000 points in the morning trade. The glitch prevented some traders from executing their orders, while others faced delays or errors. The glitch also affected the display of orders and positions on the Kite platform, causing confusion and panic among the users.
How did the traders react to the glitch?
The traders who were affected by the glitch expressed their frustration and anger on social media platforms, such as X, formerly Twitter, and Reddit. They claimed that they suffered huge losses due to the glitch, and demanded compensation from Zerodha. Some traders also threatened to file complaints or lawsuits against the company, or to switch to other platforms. Some traders shared screenshots of their orders and positions, showing the discrepancies and errors caused by the glitch.
The traders also compared Zerodha with other online broking platforms, such as Groww, Upstox, and Angel Broking, which also faced technical glitches in the past. They questioned the reliability and quality of Zerodha’s services, and asked for more transparency and accountability from the company. They also criticized the company’s customer support, which they said was unresponsive and unhelpful during the glitch.
How did Zerodha respond to the glitch?
Zerodha acknowledged the glitch on social media platforms, and apologized for the inconvenience caused to the users. The company said that the glitch was due to a connectivity issue, and that it was working to resolve it as soon as possible. The company also said that it would update the users on the status of the glitch, and that it would provide more details on the cause and the impact of the glitch later.
Zerodha also said that it would not be able to compensate the traders for the losses incurred due to the glitch, as per its terms and conditions. The company said that it was not liable for any losses or damages arising from technical failures, errors, or delays, and that the users were responsible for their own trading decisions and risks. The company also said that it was not obligated to execute or cancel any orders that were affected by the glitch, and that the users had to bear the consequences of their orders.
Zerodha also defended its track record, and said that it had invested heavily in improving its technology and infrastructure over the years. The company said that it had made significant architectural changes to its platform, and that it had reduced the probability and frequency of technical glitches. The company also said that it had the least complaints among the top brokers, as per the exchange data, and that it had the highest customer satisfaction and retention rates in the industry.
The glitch was the latest in a series of technical issues faced by Zerodha, which has over 6.7 million active clients and a market share of over 17%. The company, which was founded in 2010, has disrupted the online broking space with its low-cost and user-friendly platform, but has also faced challenges in scaling up and maintaining its service quality. The glitch has highlighted the need for more robust and resilient technology, as well as more effective and responsive communication, for online broking platforms.