How to build a profitable startup? FYERS' Tejas Khoday shares his mantra
Khoday talks about how bootstrapping shapes you to think long-term
- Nov 17, 2025,
- Updated Nov 17, 2025 2:15 PM IST
India’s retail investor base has deepened significantly since 2020, marking a structural shift in how households save and participate in capital markets. Even as growth moderates and regulations tighten, the long-term trend of financialisation remains intact. In an interaction with Business Today, CEO and Co-Founder Tejas Khoday of FYERS said that while DIY investing has grown rapidly, the next wave will likely be digital advisory. He also shared insights on his entrepreneurial journey, market outlook, and advice for founders aiming to build a sustainable startup. Edited excerpts:
BT: You expect retail participation to moderate and consolidate. What could trigger those phases, and how should platforms prepare?
Khoday: Retail participation has deepened post-Covid, and the trend is sustainable, though growth will moderate. Only around 3-4% of India’s population currently invests in mutual funds, so there’s still vast headroom to grow. The next decade will likely see the steady financialisation of savings as incomes rise and awareness improves. That said, participation may consolidate periodically. That’s natural as markets mature and regulations tighten. Sebi’s recent steps have increased investor protection and reduced speculative excesses. In the long run, that’s a good thing. We may not reach 30-40% participation this decade, but we will get there eventually, perhaps in the next one.
BT: How do you see the domestic brokerage industry over the next five years?
Khoday: Zero-commission investing has changed the dynamics, but the Indian market still has enormous untapped potential. While DIY investing has grown rapidly, the next wave will likely be digital advisory, which is highly personalised, AI-enabled investment guidance that combines the best of technology and human insight. Regulation in India is strong and proactive, which is good for long-term sustainability. Sebi has done a commendable job in ensuring that markets remain fair and transparent. Over the next five years, I see the industry evolving towards full-stack financial platforms and brokers transforming into integrated entities offering trading, asset management, and possibly even investment banking solutions.
BT: Several brokerages have launched IPOs recently. Is your company planning to go public?
Khoday: At present, we have not publicly committed to a specific IPO timeline. If the market conditions align and the business scale is appropriate, a listing remains an option, but it is not our current focus.
BT: You have remained bootstrapped and debt-free. What lessons have you learned from your entrepreneurial journey so far?
Khoday: Bootstrapping has been a grounding experience. When you fund a business with loans rather than equity, it forces discipline; you’re constantly aware that what you borrow must be repaid. That awareness keeps you sharp and agile. It teaches you to scale sustainably, be conscious of costs, and focus on profitability early on. Every move must have a purpose because you can’t afford to waste.
The biggest lesson has been that survival must come before victory. Bootstrapping shapes you to think long term and build brick by brick, also teaches humility that you learn how every rupee must be earned before it’s spent. Over time, this has helped build a culture of diligence and careful spending at FYERS.
BT: As per Tracxn, FYERS posted a profit of Rs 70.70 crore in FY24 against Rs 2.6 crore in FY21. What have been the key drivers of your strong growth during these years? Can you share your latest figures for FY25?
Khoday: Our strong growth over the FY21-FY24 period has been driven by two core pillars which are focusing on our active customer base and trading volumes, especially among derivatives/open-interest segments; and a tech-first platform strategy by building trader-centric architecture, low latency systems, algorithmic trading with API access that allow us to be more compelling to serious traders and reduce our cost of client acquisition. There was a lull phase in the markets over the last year or so, due to regulatory curbs on derivatives trading, along with a market decline. Our revenues for FY25 were about Rs 300 crore; despite that, we remain profitable, debt-free and focused on unit economics.
BT: How can an individual build a profitable startup, and what are the biggest challenges entrepreneurs face in the initial years?
Khoday: Building a profitable startup begins with identifying a real gap in the market and solving it sustainably. For me, the realisation was that finance professionals understood markets but not technology, and tech professionals understood systems but not finance. FYERS was born out of bridging those two worlds. Profitability comes from adding value, not by simply cutting costs or chasing scale at any price. The early years are the hardest because you lack capital, credibility, and certainty. You must make trade-offs every day between growth and sustainability, ambition and survival. Many founders underestimate risk or seek quick validation; the key is to focus on being diligent and risk-aware from day one.
BT: Players like Zerodha, Groww and Angel One are expanding aggressively. What gives FYERS its competitive edge in this crowded market?
Khoday: Our edge lies in technology-led innovation and deep understanding of trading behaviour. We bridge the worlds of finance and tech, which is something most traditional brokers and tech-driven startups struggled to do. We’ve built our products in-house, one feature at a time, with a focus on performance, transparency, and user experience rather than marketing-led growth. In a market where many compete on price, FYERS competes on value and delivers precision tools and a superior platform for active market participants.
BT: You recently entered the PMS space. Could you tell us more about your product and who it is best suited for?
Khoday: Yes, we have launched our PMS under the FYERS Asset Management vertical. The product is designed for investors who want to assign active investment decisions to a specialist team for typically those with a higher account size (HNI/affluent investors) and a long-term time horizon. The strategy emphasises high-conviction portfolios, active management, transparency of underlying holdings, and disciplined risk controls. For investors wanting more than just basic brokerage and wishing to access a managed portfolio via a tech-enabled platform with a strong operational backbone, this product is well-suited.
BT: Sebi’s tightening of margin and leverage norms has significantly changed retail trading behaviour. How has this impacted FYERS’ business and your clients’ approach to trading?
Khoday: SEBI’s tightening of margin and leverage norms has had a visible impact. Participation has saturated compared to last year, and our revenues have moderated, but that’s true across the industry. These measures have made markets more stable and investor-friendly. At FYERS, we see this as a positive change. The share of speculative volumes has dropped, and awareness about the risks of trading has improved. Regulations have also disincentivised brokers from promoting derivatives trading aggressively, ensuring a healthier ecosystem. Overall, our client base has become more informed, disciplined, and risk-aware, which aligns with our long-term philosophy of sustainable participation.
BT: Tell us about your journey from trader to starting FYERS?
Khoday: My journey began when I was just a curious kid watching financial news tickers scroll across the TV screen. I didn’t come from a family of financiers; my parents passed when I was nine, leaving my brothers and me with a lot of debt and many questions about how money works. That experience taught me survival skills early and what debt is, how interest compounds, and why financial prudence matters. I started trading as a young adult, as a full-time trader and later by working at brokerage firms across traditional and discount broking. I saw first-hand that the industry either understood markets or technology, but rarely both. That gap inspired FYERS, a platform built by traders, for traders, to combine deep market understanding with cutting-edge tech. We began with no external capital, funding the business with loans, serving advanced traders who had multiple accounts elsewhere but wanted better technology and transparency.
BT: How do you view the market outlook going forward, and which segments or themes do you think investors should focus on right now?
Khoday: The forecasted GDP for this year is approximately 6.5% despite tariffs and geopolitical uncertainty. Low inflation, low interest rates, GST cuts, a stable rupee and growing domestic demand will help sustain the momentum in H2FY26. The markets have been resilient, and fund flows look encouraging. We believe that the indices could deliver double-digit returns if all goes well. However, valuations remain a concern, so investors should be picky about what they invest in for the long term. The IPO markets are shaping up very well with rising investor participation. Last year, we had around 320 IPOs across the main board and SME listings. As per our projections, around Rs 1.5 lakh crore was raised in the primary markets. FY26 may exceed that, considering the number of mega IPOs on the horizon. Investors should be particularly wary about dabbling in overvalued startups going public this year.
India’s retail investor base has deepened significantly since 2020, marking a structural shift in how households save and participate in capital markets. Even as growth moderates and regulations tighten, the long-term trend of financialisation remains intact. In an interaction with Business Today, CEO and Co-Founder Tejas Khoday of FYERS said that while DIY investing has grown rapidly, the next wave will likely be digital advisory. He also shared insights on his entrepreneurial journey, market outlook, and advice for founders aiming to build a sustainable startup. Edited excerpts:
BT: You expect retail participation to moderate and consolidate. What could trigger those phases, and how should platforms prepare?
Khoday: Retail participation has deepened post-Covid, and the trend is sustainable, though growth will moderate. Only around 3-4% of India’s population currently invests in mutual funds, so there’s still vast headroom to grow. The next decade will likely see the steady financialisation of savings as incomes rise and awareness improves. That said, participation may consolidate periodically. That’s natural as markets mature and regulations tighten. Sebi’s recent steps have increased investor protection and reduced speculative excesses. In the long run, that’s a good thing. We may not reach 30-40% participation this decade, but we will get there eventually, perhaps in the next one.
BT: How do you see the domestic brokerage industry over the next five years?
Khoday: Zero-commission investing has changed the dynamics, but the Indian market still has enormous untapped potential. While DIY investing has grown rapidly, the next wave will likely be digital advisory, which is highly personalised, AI-enabled investment guidance that combines the best of technology and human insight. Regulation in India is strong and proactive, which is good for long-term sustainability. Sebi has done a commendable job in ensuring that markets remain fair and transparent. Over the next five years, I see the industry evolving towards full-stack financial platforms and brokers transforming into integrated entities offering trading, asset management, and possibly even investment banking solutions.
BT: Several brokerages have launched IPOs recently. Is your company planning to go public?
Khoday: At present, we have not publicly committed to a specific IPO timeline. If the market conditions align and the business scale is appropriate, a listing remains an option, but it is not our current focus.
BT: You have remained bootstrapped and debt-free. What lessons have you learned from your entrepreneurial journey so far?
Khoday: Bootstrapping has been a grounding experience. When you fund a business with loans rather than equity, it forces discipline; you’re constantly aware that what you borrow must be repaid. That awareness keeps you sharp and agile. It teaches you to scale sustainably, be conscious of costs, and focus on profitability early on. Every move must have a purpose because you can’t afford to waste.
The biggest lesson has been that survival must come before victory. Bootstrapping shapes you to think long term and build brick by brick, also teaches humility that you learn how every rupee must be earned before it’s spent. Over time, this has helped build a culture of diligence and careful spending at FYERS.
BT: As per Tracxn, FYERS posted a profit of Rs 70.70 crore in FY24 against Rs 2.6 crore in FY21. What have been the key drivers of your strong growth during these years? Can you share your latest figures for FY25?
Khoday: Our strong growth over the FY21-FY24 period has been driven by two core pillars which are focusing on our active customer base and trading volumes, especially among derivatives/open-interest segments; and a tech-first platform strategy by building trader-centric architecture, low latency systems, algorithmic trading with API access that allow us to be more compelling to serious traders and reduce our cost of client acquisition. There was a lull phase in the markets over the last year or so, due to regulatory curbs on derivatives trading, along with a market decline. Our revenues for FY25 were about Rs 300 crore; despite that, we remain profitable, debt-free and focused on unit economics.
BT: How can an individual build a profitable startup, and what are the biggest challenges entrepreneurs face in the initial years?
Khoday: Building a profitable startup begins with identifying a real gap in the market and solving it sustainably. For me, the realisation was that finance professionals understood markets but not technology, and tech professionals understood systems but not finance. FYERS was born out of bridging those two worlds. Profitability comes from adding value, not by simply cutting costs or chasing scale at any price. The early years are the hardest because you lack capital, credibility, and certainty. You must make trade-offs every day between growth and sustainability, ambition and survival. Many founders underestimate risk or seek quick validation; the key is to focus on being diligent and risk-aware from day one.
BT: Players like Zerodha, Groww and Angel One are expanding aggressively. What gives FYERS its competitive edge in this crowded market?
Khoday: Our edge lies in technology-led innovation and deep understanding of trading behaviour. We bridge the worlds of finance and tech, which is something most traditional brokers and tech-driven startups struggled to do. We’ve built our products in-house, one feature at a time, with a focus on performance, transparency, and user experience rather than marketing-led growth. In a market where many compete on price, FYERS competes on value and delivers precision tools and a superior platform for active market participants.
BT: You recently entered the PMS space. Could you tell us more about your product and who it is best suited for?
Khoday: Yes, we have launched our PMS under the FYERS Asset Management vertical. The product is designed for investors who want to assign active investment decisions to a specialist team for typically those with a higher account size (HNI/affluent investors) and a long-term time horizon. The strategy emphasises high-conviction portfolios, active management, transparency of underlying holdings, and disciplined risk controls. For investors wanting more than just basic brokerage and wishing to access a managed portfolio via a tech-enabled platform with a strong operational backbone, this product is well-suited.
BT: Sebi’s tightening of margin and leverage norms has significantly changed retail trading behaviour. How has this impacted FYERS’ business and your clients’ approach to trading?
Khoday: SEBI’s tightening of margin and leverage norms has had a visible impact. Participation has saturated compared to last year, and our revenues have moderated, but that’s true across the industry. These measures have made markets more stable and investor-friendly. At FYERS, we see this as a positive change. The share of speculative volumes has dropped, and awareness about the risks of trading has improved. Regulations have also disincentivised brokers from promoting derivatives trading aggressively, ensuring a healthier ecosystem. Overall, our client base has become more informed, disciplined, and risk-aware, which aligns with our long-term philosophy of sustainable participation.
BT: Tell us about your journey from trader to starting FYERS?
Khoday: My journey began when I was just a curious kid watching financial news tickers scroll across the TV screen. I didn’t come from a family of financiers; my parents passed when I was nine, leaving my brothers and me with a lot of debt and many questions about how money works. That experience taught me survival skills early and what debt is, how interest compounds, and why financial prudence matters. I started trading as a young adult, as a full-time trader and later by working at brokerage firms across traditional and discount broking. I saw first-hand that the industry either understood markets or technology, but rarely both. That gap inspired FYERS, a platform built by traders, for traders, to combine deep market understanding with cutting-edge tech. We began with no external capital, funding the business with loans, serving advanced traders who had multiple accounts elsewhere but wanted better technology and transparency.
BT: How do you view the market outlook going forward, and which segments or themes do you think investors should focus on right now?
Khoday: The forecasted GDP for this year is approximately 6.5% despite tariffs and geopolitical uncertainty. Low inflation, low interest rates, GST cuts, a stable rupee and growing domestic demand will help sustain the momentum in H2FY26. The markets have been resilient, and fund flows look encouraging. We believe that the indices could deliver double-digit returns if all goes well. However, valuations remain a concern, so investors should be picky about what they invest in for the long term. The IPO markets are shaping up very well with rising investor participation. Last year, we had around 320 IPOs across the main board and SME listings. As per our projections, around Rs 1.5 lakh crore was raised in the primary markets. FY26 may exceed that, considering the number of mega IPOs on the horizon. Investors should be particularly wary about dabbling in overvalued startups going public this year.