Everything You Need To Know About Motilal Oswal And Its Business Model

PV Vyshnavi PV Vyshnavi
Mar 13, 2021 8 min read
Everything You Need To Know About Motilal Oswal And Its Business Model

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. The company was founded by Motilal Oswal and Raamdeo Agarwal in 1987 as a small sub-broking unit, with just 2 people running the show. The company is listed on BSE and NSE stock exchanges. The company offers loans for home, construction, composite, improvement, and extension in India

The company entered into investment banking in 2005, followed by private equity fund in 2006. The company focuses on customer-first attitude, ethical and transparent business practices, respect for professionalism, research based value investing and implementation of cutting edge technology. Which have enabled the company to blossom into an over 6000 member team. On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named as Motilal Oswal Asset Management Company (MOAMC).

On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named as Motilal Oswal Asset Management Company (MOAMC). Today we are a well-diversified financial services firm offering a range of financial products and services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, and Home Finance.

They have a diversified client base that includes retail customers, mutual funds, foreign institutional investors, financial institutions and corporate clients. We are headquartered in Mumbai and as of September 2020, had a network spread over 550 cities and towns comprising 2500 plus Business Locations operated by our Business Partners and us and 16,00,000 plus customers.

The Business Model of Motilal Oswal
Partnership Business Models of Motilal Oswal

The Business Model of Motilal Oswal

Motilal Oswal Franchise model is one of the multiple business models this full service stockbroker has to offer to potential business takers. The broker claims to have a presence in around 570 cities and 2200 plus locations across different parts of the country. Furthermore, there are around 2300 business partners associated falling in one business model or the other. It entered into the foray of franchising in the year 1999.

The logo of Motilal Oswal
The logo of Motilal Oswal

Motilal Oswal has a partner strength of more than 1400 through its various business model and provides services at both retail and institutional levels such as Motilal Oswal Demat Account opening Motilal Oswal offers sub broker business models through which their approach towards business partners is that of being an extension of our brand and an extension of the family. This full service stockbroker claims to provide the following benefits to its business partners:

  • Back office Support โ€“ Helps in Risk management and Business operation Assistance.
  • Stock market research and advice โ€“ helps in research reports, Advisory, strategies.
  • Business development opportunities โ€“ helps in onboarding assistance, mentorship programs and Technology support through an exclusive mobile app.
  • Technology assistance through trading products โ€“ helps in trading platforms and portfolio tools.

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Partnership Business Models of Motilal Oswal

Franchise

Individual or businesses that are looking to expand their financial footprint can opt for the Motilal Oswal franchise model. You need to have a requisite office space along with a small team that can handled day to day operations. Entrepreneurs who think they have a dream to grow big and have the passion and the capability to pursue the journey towards their dream. With all the initial expenses taken care of, you get a revenue sharing of 60% of the brokerage generate by them.

The eligibility for this model are good and consistent reputation in the financial space, a refundable deposit of Rs. 3 lakh to be made to the full service stockbroker and an experience of 2 to 3 years in the streams of broker or sub broker. They must also have a minimum investment of Rs. 5 lakh to Rs. 10 lakh at the onset with reasonable wallet for infrastructure related expenses and an area of 150 to 200 sq. ft. to set up an office in a year.

Benefits of joining Motilal Oswal are:

  • Comprehensive Business development Initiatives.
  • Strong Mentorship form Senior Management.
  • Robust Back Office and Operations Support.
  • Solid Research and Solid Advice.

How Motilal Oswal will build your business:

  • Superior Technology Platform for Multiple Products.
  • Dedicated Onboarding and Engagement Services.
  • Time tested and proven New client Acquisition strategies.
  • Full proof client shifting/business migration process.

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Employee to Entrepreneur

This program is specifically for people who are either an employee at a stockbroking house or have a reasonable experience in the stock market. The eligibility criteria for this business model is that you must either be an employee of any stockbroking company or must be direct stockbroking experience. Itโ€™s for those who want to start their own business. Even in this model you get to keep a specific percentage of the overall revenue generated through your addition to the program. This percentage can range from 30% to 40% of the overall revenue.

The benefits under this model are:

  • No limits to your career growth.
  • Opportunity to create a legacy for your future generations.
  • Extend your working life with your own business.
  • Customize your business according to your area of expertise.

How Motilal Oswal can help in the employee to entrepreneurs sector:

  • Get insights from our entrepreneurial experience of growing a broking business.
  • Get a product suite to fulfill every need of your client.
  • Get access to our famed Solid Research and Advice.
  • Get readymade Back Office Infrastructure and Risk Management Systems.
The products and services offered by Motilal Oswal
The products and services offered by Motilal Oswal

Remisier

This business model of Motilal Oswal does not require any upfront capital expenditure to set up the business. An individual looking to spend nothing on the office infrastructure cost may try out this business model. The idea is simple, they provide interested business leads to Motilal Oswal and brokerage generated from the converted clients will have a share for the remisier. However the broker claims that it will provide all kinds of tools, research and other related assistance for client/lead acquisition.

The eligible criteria for setting up a remisier business model with Motilal Oswal are reasonable reputation and hold of potential client base in the financial space, sales experience of at least 2 to 3 years of financial products, an operational expense capacity of Rs. 1 lakh. Entrepreneurs wanting to set up their business at no capital cost and largely work independently.

The benefits of this model are:

  • Build your business with minimal costs.
  • Complete infrastructure support available.
  • No initial set up costs. Robust advisory support.
  • Dealing support at branches.

How Motilal Oswal can help set up their business:

  • Zero Infrastructure and support costs.
  • Superior Technology Platform for multiple products.
  • Support at local branches for dealing.
  • Support for new client acquisition.

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Channel Partner

This business model of Motilala Oswal channel partner is more of a collaboration with the broker rather than working under the broker. In case you are already working with a specific set of clients for stock market trading, then you may choose to opt for this business model. The idea, in this case is to offer the existing client base of yours with other potential investment opportunities apart from the ones they are already into.

The eligibility criteria in case of a channel partner program is an active set of clients trading or investing in the stock market. Since channel partners are going to bring investor base to the full service broker, they get better revenue sharing on new investment products sold (which is anything from 50% to 60%). Those who would like to collaborate with us to cater to a wider range of clients and partake in the revenue pie of the complete financial intermedia on opportunity.

Benefits of being Motilal Oswal channel partner:

  • Comprehensive business development initiatives.
  • Strong mentorship from senior management.
  • Robust back-office and operations support.
  • Solid research, advice and advisory products.

How Motilal Oswal help build your business:

  • Superior technology platform for multiple products.
  • Dedicated customer acquisition and Engagement Services.
  • Staffing & training support.
  • Multiple Assets - one stop shop for your clients.

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Digi Partner

It is a unique partnership model where youโ€™re end to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments, and moderation is done digitally. As the name suggests, Digi-Partner is a unique partnership model where youโ€™re End to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments and moderation is done digitally.

Benefits of joining Motilal Oswal as Digi Partner:

  • No compulsion of office infrastructure.
  • Online Funds & Securities pay-in and pay-out facility.
  • Call-N-Trade dealing service support.
  • Easy client account opening plus lucrative brokerage.

How the company can help you build your business:

  • Extended business development support.
  • Dedicated reactivation desk.
  • Technology support with Uppermost.
  • Multiple asset classes to cross sell.

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FAQs

What is Motilal Oswal Sub Broker Commission?

Taking into account the entitlements, precisely in terms of the revenue, there is a higher ratio of revenue that you will retain. There is a flexible revenue sharing provided by the stockbroking house, where 60% โ€“ 80% is provided to the sub-broker.

Which is the cheapest brokerage in India?

5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.

What is the lowest brokerage charges in India?

The minimum brokerage charge by the full-service brokers is the minimum commission they charge for trading with them. With a brokerage of 0.50%, if the total trade value is less than Rs 7000, you will pay the minimum brokerage amount of Rs 35.

Which broker is best in India?

Zerodha

Who owns Motilal Oswal?

Passionate Investment Management Private Limited

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