The financial services sector has been growing quite rapidly in India and is supposed to contribute hugely to the economy of the nation.
The financial services sector, which would constitute nearly 11% of India’s GDP, would translate to about $4.5 trillion in 2025. During the last five years, securities trading and brokerage, like Kotak Securities, had a compound annual growth rate (CAGR) of 15.8%.
In addition to enabling a retail surge toward equity markets, financial literacy increased the number of applicants for this franchises more than ever before.
The interest created in the Kotak Securities franchise has become quite exposed among entrepreneurs wishing to cash in on this boom, projected to achieve an annual growth of 17.3% during the projected period till 2028 as compared to a general economy growth of only 6.8%.
About the Brand
Among India’s top private sector banks, Kotak Mahindra Bank is the parent house for Kotak Securities. Established in the year 1994, the investment bank has over three decades of experience in the Indian securities market. So, now, Kotak Securities is a solid bank in stockbroking and investment. Currently, it serves 4.5 million customers under its branches and franchisees across the Indian subcontinent.
Kotak Securities offers a range of complete investment products and services, which include equity and derivatives trading, mutual funds, IPOs, PMS, and advisory for investment based on research. The brand is known for its strong technology backbone, innovative products, and customer orientation.
As of 2025, Kotak Securities occupies close to 11.3% of the retail broking pie in India, which makes it one of the top three brokers in the country. All these facts only make Kotak Securities worthwhile for aspiring entrepreneurs to invest in, given the strong parentage under the Kotak Mahindra Group, which provides ample brand equity and stability.
Kotak's Unique Selling Propositions (USPs)
Kotak Securities has its differentiations from competitors with the following unique selling propositions:
- Integrated Banking and Securities Platform: Services from the Kotak Mahindra group enable franchisee clients to enjoy these synergies that exist between banking and securities.
- Advanced Trading Platforms: Kotak Securities does offer very advanced trading platforms with an advanced charting, real time market data, and seamless execution facilities.
- Coverage in Research: The research team comprises vast numbers of companies that stand more than 350, covering detailed investigation and issues of advice in investment.
- Its Diversity in the Product Range: It can provide the broadest spectrum of products that can be used by a franchisee to a client apart from equities, such as mutual funds, IPOs, bonds, derivatives, and many more.
- Strong Risk Management Systems: Kotak Securities has employed stringent risk management practices so that both clients and franchise partners as well as practice owners are safeguarded.
- Multi-channel Customer Support: By providing assistance through phones, e-mail, and chat all day, every day of the week, franchisees can render real-time services to their clients.
Why Invest in the Kotak Securities Franchise?
The franchise investment of Kotak Securities brings forward a very impressive monetary concept.
Economic Indicators and Market Growth
- By 2027, with an average growth rate of 6.8% per annum, India’s GDP would reach $5.3 trillion.
- Contribution of financial services to GDP would also increase from 11% in 2025 to 14% by 2028.
- There are 105 million retail investors in the Indian equity markets at the close of 2025 compared to 75 million such investors at the close of 2023-an increase of an astounding 40% over just two years.
- Trading in securities has grown by 28.5% on average over the past three years in terms of volume.
Industry Potential and Demand
- The number of demat accounts in India increased from 89 million in 2023 to 138 million in 2025, a very low 9.8% of the country, indicating ample growth prospects.
- The average daily trading volume on Indian exchanges has been experiencing a 32.7% year-on-year increase in trading volume through 2025.
- Assets under management (AUM) in the mutual fund industry have surpassed ₹85 trillion, with a growth rate of 22.3% per annum since 2021.
- SIP inflows have reached an amount of ₹28,500 crores per month in 2025, which is 175% greater than levels in 2021.
Profitability and Return on Investment
- On average, this franchise usually takes 18 to 24 months to break even after starting operation.
- With good performance, a franchisee makes a whopping profit margin of 35-42% after recovering the initial costs of being a Kotak Securities franchise.
- The renewal rate of franchises stands at an impressive 94.7%, indicating the high satisfaction level among existing partners.
- An average 25-30% annual ROI is shared among franchisees after the initial setup period.
Technological Edge and Future-Readiness
- Between the years 2023 and 2025, opportunities for alternative investments in technology upgradation to the tune of ₹850 crores have been availed by Kotak Securities.
- Forever, the AI-enabled advisory platform has demonstrated a 28.3% greater customer acquisition rate than conventional methods.
- Trading from the mobile now accounts for 76.5% of all trades; Kotak’s mobile app has been rated 4.6/5 on app stores.
- With the introduction of the blockchain-based settlements system, 62.8% savings were achieved in transaction processing time.
Understanding the Kotak Securities Franchise Model
The various franchise models offered by Kotak Securities are designed depending upon the investment capacities and business aspirations. The franchise operates on the revenue-sharing model, wherein the franchisee earns a cut of the brokerage and fees earned from the clients they bring in and service.
Revenue Model and Earning Potential
The earnings of the franchisee derive largely from:
- Percentage of brokerages (brokerage percentages vary from 50075 depending on the franchise model)
- Commissions from mutual fund sales, (Usually 4060% of the commission earned by Kotak Securities)
- Quarterly and yearly target achievement incentives (10-15% can be added to the regular earnings)
- Referral fees for banking and loan products (generally 0.25-0.5% of the loan amount)
The Cost of a Kotak Securities Franchise in India
For potential investors, being aware of the basic cost structure of the this franchise is important. The expenses are dependent on different factors including the location concerned, franchise model type, and size of the business. Given below is a thorough description:
Cost Breakdown
1. Franchise Fee
The franchise fee forms a major part of the this franchise cost. This is a one-time charge to Kotak Securities for the right to use its name, business systems, and proprietary software/technology. The franchise fees are charged as follows:
- Tier 1 Cities: (Mumbai, New Delhi, Bengaluru, etc.): ₹10-15 lakhs
- Tier 2 Cities: (Pune, Ahmedabad, Jaipur, etc.): ₹7-10 lakhs
- Tier 3 Cities: (other smaller cities and towns): ₹5-7 lakhs
2. Initial Investment
Apart from the franchise fees, several other components come together for the initial Kotak Securities franchise :
- Security deposit: ₹3-5 lakhs (to be refunded after the due completion of the franchise-term agreement).
- Minimum office space requirement: Kotak Securities is 300-500 sq. ft. for the investment of ₹3-5 lakhs in interior designing and furnishing (depending upon the location and quality).
- IT infrastructure (computers, servers, UPS): ₹2-3 lakhs
- Connectivity and Networking: ₹50,000-1 lakh
- SEBI registration (for AP model): ₹25,000-50,000
- Certain compliance: ₹50,000-1 lakh
- Initial marketing and promotion: ₹1-2 lakhs
- Recruitment and training: ₹1-1.5 lakhs
3. Recurring Expenses
Once a franchise is setup, numerous recurring expenses comprise Kotak Securities’ operational franchise cost:
- Rent and Utilities per month: ₹30,000-1 lakh (office rent)-₹10,000-20,000 (electricity & utilities)
- Staff salaries per month: ₹25,000-40,000 (relationship managers) – ₹15,000-25,000 (admin staff) – ₹10,000-15,000 (office assistant/receptionist)
- Technology & Connectivity per month: ₹5,000-10,000 (trading terminal charges) – ₹8,000-15,000 (Internet & connectivity) – ₹5,000-8,000 (software maintenance)
- Marketing & Client Acquisition: ₹15,000-30,000/month (for advertising at a local level); Client events and seminars: ₹20,000-50,000 per quarter
- Regulatory & Compliance Cots: ₹50,000-1 lakh per year (annual regulatory fee), Audit & compliance maintenance: ₹10,000-20,000 per month
Profitability & ROI: The Potential for Success
Kotak Securities franchise investment has high profit potential with high returns. Franchisees normally start generating ₹3.5-5 lakhs a month in revenue while maintaining operational costs at ₹1.5-3.5 lakhs. Therefore, the net profit for a franchisee is somewhere between ₹1.5-2.5 lakhs a month. This annualizes to a profit of around ₹18-30 lakhs, ensuring returns of 60-100% on operating costs and 15-25% on the total investment, including the franchise fee. Also, with good demand for brokerage services, the margins remain high.
Retail investor participation in India’s equity markets growth was 15.3% every year since 2021, with active traders exceeding 45 million by 2025. Monthly demat account openings average 3.2 million, indicating a complete transformation from traditional assets towards equities. The presence of such demand and increasing financial awareness make this franchise an astute and profitable investment in India’s burgeoning stockbroking industry.
Factors Influencing ROI
There are many factors affecting the ROI after paying the franchise fee to Kotak Securities:
- Location: The franchises in financial hubs or areas with high-net-worth individuals tend to yield much better performance. Therefore, with the added cost of a Kotak Securities franchise in such cities, the ROI generated can be 35-40% higher than between Tier 1 and Tier 3 cities.
- Entrepreneur’s Background: Generally, franchisees with some experience in financial services are able to break even 30% sooner than those with no relevant background.
- Client Acquisition Strategy: Franchisees who hone in on HNW clients (with portfolios above ₹50 lakhs) report profitability on average 45% higher than those targeting mass-market clients.
- Product Mix: Diversifying into other product offerings away from only equity trading into mutual funds, IPOs, and portfolio management services can add an extra 25-30% revenue to the basket.
- Operational Efficiency: Improving staff productivity, aided by digital tools, can help reduce the operational cost of this franchise by 15-20%.
- Market Condition: Generally, a bull market will result in a trading volume increase of 40-50%; hence, an increase in revenue going hand in hand.
Eligibility Criteria
Kotak Securities maintains strict eligibility criteria to secure franchise success and brand integrity. Potential franchisees need to meet the following requirements before having any considerations regarding this franchise:
- Educational And Professional Requirements: The applicant should hold at least a bachelor’s degree, preferably in commerce, economics, finance, or business administration. NISM (National Institute of Securities Markets) certification is a must. Preference will be given for more than three years of experience in the banking, financial services, or insurance sectors. A preference may be given to applicants with a work experience of over three years in banks, financial services, or insurance.
- Financial Requirements: A net worth of a minimum of ₹30 lakhs ensures financial capabilities. At least 50% of the Kotak Securities franchise cost must be in liquid assets. Good credit history must be substantiated with preference given to those with a CIBIL score above 750.
- Infrastructure Requirements: The franchisee must have access to a commercial space with an area in the range of 300-500 sq. ft. An appropriate site would be in a commercially viable area with decent footfall and good accessibility for the conveniences of clients, parking availability being an added advantage.
- Business Qualities: The applicant will have an entrepreneurial mindset with strong business acumen and a strong network with the local business community. Being committed to compliance, ethical business practices, and sound management of business is a must.
- Documents Required: Required are PAN card, Aadhaar card, and address proof, educational certificates, bank statements (last six months), and income tax returns (last three years) are a must. A comprehensive business proposal is also required.
- Application Process: Once the notices are sent to applicants, the Kotak Securities selection team strictly evaluates the applications, thus making this a high-stake process where rejection chances stand at 78%. However, adherence to the criteria mentioned above greatly improves the chances for a franchise.
How to Apply for a Kotak Securities Franchise
- Initial Inquiry and Application Submission: This should be initiated by either submitting your inquiry through the Kotak Securities’ official website, or getting in touch with their franchise development team directly. Complete the preliminary application with your background details, preference of location, and investment capacity, so that it can be checked against the basic eligibility requirements.
- Preliminary Discussion and Assessment: If shortlisted, the representative will arrange for a discussion with Kotak Securities to know more about your professional experience, financial strength, and business goals. They will define the franchise cost structure and any queries you may have.
- Business Plan Submission: The shortlisted candidates should submit a business plan describing its marketing strategy, client acquisition strategy, financial projections, and staffing needs. It should detail how the franchise would become profitable and recover the initial investment.
- Due Diligence and Background Verification: Kotak Securities undertakes a due diligence exercise to check for financial stability, credit history, and regulatory compliance. This helps ensure that franchisees shall have the ability and credibility to run the business.
- Interview and Site Evaluation: Shortlisted candidates are now subjected to a final interview with the franchising committee. Concurrently, Kotak Securities assesses the proposed location in terms of accessibility, footfall, and competition.
- Franchise Agreement and Fee Payment: Successful candidates will be sent a franchise agreement that sets out terms applicable to investment costs, revenue-sharing, and operating guidelines. The actual signing of the agreement takes place after the agreement passes a legal review and the initial franchise fee is paid. The typical duration of this process ranges from 45-60 days.
Support and Training from Kotak Securities
- Initial Training Program: The franchise and their important staff were put into an intensive 3-week training program at Kotak Securities’ regional training centers. It then enrolled them in introductory courses on the securities market and products; it also covered trade platform operations, client acquisition, compliance, risk management, and marketing. This paves the way for the operation to be started on a complete footing by the franchisees.
- Operational Support: Kotak Securities offers and always gives continuous operational support through a designated relationship manager, 24/7 technical support for the trading platforms, central back-office services, and regular system upgrades free of charge. While standard operating procedure and best practices are maintained by franchisees, this material helps them to have their operations smooth.
- Marketing and Business Development Support: Franchisees receive co-branded marketing materials, digital marketing assistance, lead generation programs, CRM tools, and access to national marketing campaigns. Additionally, business intelligence insights and referral systems help drive client acquisition and retention.
- Research and Advisory Support: Reports on more than 350 companies, daily market outlooks, technical analysis, and specific sector insights can be accessed through Kotak Securities by franchising partners. These are enough tools to help the franchisee develop an informed recommendation to the clients.
- Continuous Education and Skill Enhancement: Franchisees receive online webinars monthly, quarterly skill enhancement workshops, annual franchise conferences, and premium access to advance certification programs. Along with that, there are continuous updates to different regulations to remain compliant with industry changes.
- Technology Infrastructure: Along with Kotak Securities franchise cost comes in association with state-of-the-art technology that spans from tailor-made trading platforms to mobile trading apps to integrated customer management systems to advanced analytics and a strong security infrastructure to ensure transactions are seamless and secure.
Benefits of a Kotak Securities Franchise
- Strong Brand Recognition & Trust: The 28-year history and the association with Kotak Mahindra Bank make Kotak Securities franchise instant credibility. Such well-established brand presence will also alleviate client acquisition challenges and quicken the conversion cycle by 42% compared to independent brokerage houses, thus turning it into a profitable investment for the this franchise.
- Diverse & Stable Revenue Streams: Multiple revenue streams generate income for the franchisee: equity brokerage (65%), mutual fund distribution (15-20%), placing IPOs (5-8%), and other financial products (10-12%). The diversified income model is very sound from a financial standpoint, ensuring continuing runs of profitability even through market downturns.
- State-of-the-Art Technology and Platforms: Kotak Securities invests over ₹250 crores every year in technology, offering state-of-the-art trading platforms, mobile applications, and AI-driven analytics tools for each of its franchises. The company’s algorithm-based advisory system increases client retention by 28% and boosts franchisee revenues directly.
- Comprehensive Research & Advisory Support: The 85-member research team in Kotak Securities does research on 350-plus companies in 21 sectors. These insights allow franchisees to put their clients in a better position for acquiring meaningful market advice from them. Research-backed clients trade 37% more and build relationships 42% longer, which increases franchise revenue significantly.
- Exclusive Territorial Rights: Kotak Securities grants franchisees an exclusive right to operate within a defined territory -3-5 km for Tier-1 cities & 8-10 km for Tier-3 cities-within which they operate without internal competition, maximizing their potential in the market.
- Expansion & Multi-Unit Development Opportunities: Under preferential terms for future locations, a high-performing franchisee can avail of discounts of up to 30% on the standard this franchise cost. Moreover, top franchises can also become regional developers, earning additional revenue based on the onboarding of sub-franchisees.
Conclusion
This franchise is not so much a cost as it is a way of investing in one of the most promising segments of finance in India today.
The timing for entering this sector could not be better, given that retail participation in the Indian equity markets has reached unparalleled levels and the financialization of savings is continuing to gain momentum.
A lot of growth potential with reasonable risk parameters characterizes Kotak Securities, with its wide support system, brand equity, and diversified earning streams.
Though the franchise fee is between ₹12-30 lakhs, depending upon location-Kotak Sec always made sense. The profit potential, with average annual profits after stabilization being ₹18-30 lakhs, truly makes it worthwhile.
An annual ROI of 15-25% and breakeven of 2-4 years are competitive against any other facility in the financial services sector. A Kotak Securities franchise is a lucrative stream of business for those with an interest in financial markets and relationship management and is bound to provide for a sustainable and scalable business in today’s rapidly changing Indian economy.
FAQs
Minimum this franchise cost to get started?
The minimum investment required for a Tier 3 city location is ₹12 lakhs, which consists of the franchise fee, security deposit, and basic setup costs.
When does the Kotak Securities franchise cost recover?
Usually, it takes 2-4 years for most franchisees to recover their investments; Tier 1 city locations do so faster (2-2.5 years), while Tier 3 ones take longer (3-4 years).
Is experience in stock broking required to apply for this franchise?
Experience in financial services is preferred but not mandatory. NISM certification is compulsory and the franchisee or at least one key employee must possess it.
Does this franchise cost include technology and platform fees?
Some basic technology infrastructure is provided upon commencement, while terminal charges of ₹5,000-₹10,000 are payable every month thereafter.
How does renewal work and what is the fee after the first franchise term?
The franchise agreement has a validity of 5 years after which renewal involves payment of a token fee of 15-20% of the existing Kotak Securities franchise cost applicable on new franchisees in that location.
