Starling Bank vs Zerodha: Revenue, Profit and Business Model
Starling Bank had ~$1.2B of annual revenue in FY2026. Zerodha had ~$1B of annual revenue in FY2025 and ~$491.5M of net income.
Latest financial snapshot
Starling Bank
- Latest annual revenue
- ~$1.2B (FY2026)
- Net income
- Unavailable here
- Net margin
- —
- Revenue growth
- +25.1% a year, FY2023–FY2026
Zerodha
- Latest annual revenue
- ~$1B (FY2025)
- Net income
- ~$491.5M
- Net margin
- 47.9%
- Revenue growth
- +13.4% a year, FY2023–FY2025
Financial summary
Starling Bank
Starling's profits come mainly from net interest income: it funds mortgages and SME loans with low-cost deposits. That made it a big winner from higher UK interest rates, with pre-tax profit peaking at ~$397M (£301.1M) in FY24. As rates eased, profit settled at ~$295M (£223.4M) in FY25 and ~$287M (£217.1M) in FY26, and reported revenue slipped from ~$1.24B (£940.0M) to ~$1.17B (£887.4M). Deposits still grew to ~$16.8B (£12.7B), and Engine by Starling's revenue rose 25% in FY26, adding a fee-based line that depends less on interest rates. Starling Bank is a highly disruptive, digital-only challenger bank in the UK, maintaining a massive private market valuation estimated over $3 billion.
Zerodha
Zerodha reported revenue of ~$1.03 billion (₹8,847 crore) and net profit of ~$491 million (₹4,237 crore) in FY25, down from about $1.16 billion (₹9,993 crore) and ~$638 million (₹5,496 crore) in FY24 after SEBI's F&O changes. FY26 profit was ~$497 million (₹4,283 crore) on roughly flat revenue, helped by margin trading income.
Revenue and profit by year
Starling Bank
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$1.2B | — | — | +24.3% | Source |
| FY2025 | ~$942.5M | — | — | +4.7% | Source |
| FY2024 | ~$900.5M | — | — | +50.7% | Source |
| FY2023 | ~$597.7M | — | — | — | Source |
Zerodha
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$1B | ~$491.5M | 47.9% | -11.5% | Source |
| FY2024 | ~$1.2B | ~$637.5M | 55.0% | +45.3% | Source |
| FY2023 | ~$797.7M | ~$336.9M | 42.2% | — | Source |
Where the revenue comes from
Starling Bank
- Business banking
Not formally reported
Accounts and lending for British small and medium-sized businesses. This is the main source of profit.
- Retail banking
Not formally reported
Free personal current accounts, which bring in customers and low-cost deposits that fund mortgages and SME loans.
- Engine by Starling
About $92.4 million committed ARR
Starling's cloud banking software licensed to other banks. GBP 70 million.
Zerodha
- Brokerage (intraday and F&O)
~$318M (₹2,738 Cr) in FY26
Flat fee of up to ₹20 per executed order on intraday and derivatives trades. FY26 brokerage income fell about 11% from ~$356 million (₹3,066 crore) in FY25.
- Interest income
~$263M (₹2,269 Cr) in FY26
Interest earned on client margin funds and the company's own reserves; down about 4% year on year in FY26.
- Margin trading facility (MTF)
~10% of FY26 revenue
Launched in December 2024. Kamath said the MTF book reached about $1.04 billion (₹9,000 crore), with customers borrowing around $696 million (₹6,000 crore).
- Demat annual maintenance charges
~$20.9M (₹180 Cr) in FY26
Annual charges on demat accounts, up from ~$18.6 million (₹160 crore) in FY25. Accounts opened from 1 June 2026 get the first year free.
Business model and strategy
Starling Bank
How it makes money
Starling earns money in three ways. Retail banking offers free personal current accounts, which bring in customers and deposits. Business banking serves British small and medium-sized businesses and is its main source of profit.
Growth strategy
Starling is growing through software sales and lending rather than by opening consumer banks in new countries, which is expensive and heavily regulated. It sells its Engine platform to existing banks, including in Asia and the Middle East, and it is expanding mortgage and commercial lending in the UK, funded by its deposit base of about $16.8 billion (GBP 12.7 billion).
Competitive advantage
Starling's advantage is its own core banking software. It built its banking infrastructure in the cloud from the start, while older banks run on decades-old mainframe systems that cost far more to maintain. That keeps Starling's cost per account low. Its founder, Anne Boden, came from traditional banking, which helped the company work through UK banking regulation and obtain a full licence.
Zerodha
How it makes money
Zerodha earns most of its money from trading and from client funds. Brokerage is charged only on intraday and futures and options orders, capped at ₹20 per executed order, while equity delivery trades are free. The second large stream is interest income, mainly on client margin money and on its own cash reserves.
Growth strategy
With retail derivatives activity slowing under SEBI's F&O rules, Zerodha is shifting its focus from adding traders to growing customer assets. Its levers are margin trading funding, the integration of mutual funds into Kite, Zerodha Fund House's passive funds, and new businesses in asset management, lending and insurance.
Competitive advantage
Zerodha keeps costs low through in-house technology, a team of fewer than 1,100 people and no advertising spend, which lets it stay highly profitable even as trading volumes slow.
Questions about Starling Bank vs Zerodha
Which company has higher revenue — Starling Bank or Zerodha?
Starling Bank had ~$1.2B (FY2026), while Zerodha had ~$1B (FY2025). By latest annual revenue, Starling Bank is the larger business, with Zerodha showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
How does revenue per employee compare for Starling Bank and Zerodha?
Starling Bank has $335k / employee in revenue per employee, while Zerodha has $933k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Starling Bank and Zerodha make money?
Starling Bank and Zerodha generate revenue in fundamentally different ways. Starling Bank: Starling earns money in three ways. Zerodha: Zerodha earns most of its money from trading and from client funds.
Is Starling Bank bigger than Zerodha?
By last reported revenue, Starling Bank (~$1.2B (FY2026)) is the larger company compared to Zerodha (~$1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Starling Bank vs Zerodha overview