Born into a humble Jain family in the small village of Padru in Rajasthan, Motilal Oswal’s journey to building a business empire worth over ₹9000 crore is nothing short of remarkable. Motilal grew up in a household where his father operated a modest grains trading business. Despite the family tradition of staying in the grains business, Motilal was driven by a strong desire to pursue higher education and carve out his own path. His story is one of ambition, perseverance, and the will to break barriers.
Early Education and Search for Opportunities
Motilal completed his studies at SPU Jain College in Falna, a small town in Rajasthan. Determined to create his own identity and achieve more in life, he moved to Mumbai to become a Chartered Accountant (CA). During his stay at the Rajasthan Vidyarthi Grih hostel in Andheri, Mumbai, Motilal Oswal met Raamdeo Aggarwal—another young student with dreams of doing something big. The two bonded over their ambitions and began contemplating starting a venture together, although they were still searching for the right idea.
Motilal initially worked at an audit firm as part of his journey to become a CA, but he quickly realized that the stock market held immense potential for the future. He was intrigued by the opportunity to be a part of the financial markets, and he began envisioning a future for himself in stock trading. However, in the late 1980s, the stock market was very different from what it is today. It was dominated by a few players, mostly Gujarati traders, and lacked any significant regulatory oversight. Moreover, trading was limited to just a couple of hours a day, and entering the market was challenging.
Despite the many barriers, Motilal decided to enter the stock market as a sub-broker at the Bombay Stock Exchange (BSE) in 1987. It was a tough job, involving running long distances to fulfill orders, sometimes running over two kilometers to make a stock order call and even waiting for months for the delivery of shares. These physical challenges did not deter Motilal. In fact, it motivated him to think about how he could revolutionize the brokerage system and offer a more efficient service.
The Birth of Motilal Oswal Financial Services (MOFSL)
Motilal Oswal’s dedication and hard work began to bear fruit, and soon he acquired a trading badge at the Bombay Stock Exchange. Armed with a badge and an unwavering spirit, he and Raamdeo Aggarwal co-founded Motilal Oswal Financial Services Ltd (MOFSL) in 1989. Their goal was to establish a stock broking business that was honest and transparent—qualities that were not necessarily common in the industry at the time.
The company started with a focus on providing an honest and reliable brokerage service. MOFSL became known for giving its clients accurate daily updates on stock prices through a 24×7 landline call service. During those initial years, Motilal and Raamdeo made very little money, but they were driven by their passion for creating a meaningful presence in the stock market. Things began to change in 1992 with the Harshad Mehta scam—a scandal that shook the Indian stock market but also created opportunities for newer and more ethical players like MOFSL.
Growth and Expansion
Motilal Oswal Financial Services started turning a profit after the 1992 scam, making ₹30 crore in just 20 months with an initial investment of ₹15 lakh. Motilal understood that the only way to continue growing was to invest in research and innovation. To maintain a competitive edge, they reinvested 30% of their profit into research, and in 1994, MOFSL entered the Institutional Equities business. In 1996, they also started offering wealth creation services.
The landscape of the Indian stock market changed significantly in the mid-1990s. In 1994, the National Stock Exchange (NSE) was launched, which meant brokerage firms could expand outside of Mumbai. Soon after, the Securities and Exchange Board of India (SEBI) came into the picture and brought in reforms such as the dematerialization of shares in 1996, which made trading more accessible to the general public. These changes benefited MOFSL immensely, allowing them to expand to over 10,000 customers and open 100 offices across India.
Becoming a Financial Powerhouse
Motilal Oswal’s relentless drive and vision for the future of the financial industry led to rapid growth for MOFSL. By 2006, the company had entered new business segments, including portfolio management, investment banking, and private equity. In just four years, MOFSL went from being a small brokerage firm to a diversified financial group with revenues exceeding ₹1000 crore.
A major milestone for the company came in 2004 when MOFSL went public. On September 11, 2004, MOFSL’s Initial Public Offering (IPO) was launched, raising ₹246.07 crore, with the IPO being oversubscribed by 26.4 times. The company had clocked revenues of ₹500 crore, with a profit of ₹100 crore. With over 2,00,000 investors in 360 cities across India, MOFSL had firmly established itself as a billion-dollar company worth over ₹4000 crore.
Facing Challenges and Adapting to Change
However, the journey wasn’t without its challenges. The 2008 global financial crisis led to a significant decline in brokerage fees, dropping from 1.5% to 0.05%. Such a drastic reduction in revenue forced Motilal to rethink his business model and diversify into other areas. In 2010, MOFSL launched an Asset Management Company (AMC) and entered the mutual fund business, marking its foray into asset management services.
MOFSL’s journey of diversification continued with the launch of Aspire Home Finance in 2013, which focused on providing affordable housing finance to individuals. By 2017, Aspire had disbursed over ₹4100 crore in loans, while MOFSL’s AMC business had grown to manage assets worth ₹28,800 crore. These expansions allowed MOFSL to weather the challenges of the 2008 financial crisis and emerge even stronger.
MOFSL Today: A Financial Behemoth
Today, Motilal Oswal Financial Services Ltd manages assets worth over ₹380,000 crore, and in the past year alone, the company recorded its highest-ever revenue of ₹7131 crore, with a profit of ₹2626 crore. MOFSL has served over 70 lakh customers and is valued at ₹8732 crore, making it one of India’s leading financial services companies.
Motilal Oswal’s success story is not just about business growth and wealth creation. His journey reflects a deep commitment to honesty, transparency, and the desire to create lasting value for his clients and investors. Despite his incredible personal success, with a net worth of ₹16,000 crore, Motilal Oswal has remained deeply connected to his roots and committed to giving back to society. His foundation supports the education of over 31,265 school students, providing them with the opportunity to pursue their dreams, just as he pursued his own.
The Legacy of Motilal Oswal
Motilal Oswal’s journey from a small village in Rajasthan to building a ₹9000 crore business empire is a testament to what hard work, dedication, and a willingness to take risks can achieve. He started from humble beginnings, faced numerous challenges along the way, and yet never gave up on his dream of creating a successful financial services company. His story serves as an inspiration for countless aspiring entrepreneurs who wish to make their mark in the business world.
Through MOFSL, Motilal has not only created a highly successful financial services business but also helped bring transparency and credibility to the stock market at a time when it was sorely needed. His emphasis on ethical practices, customer service, and investing in research has set a benchmark for other financial services companies in India.
Motilal Oswal’s entrepreneurial journey underscores the importance of seizing opportunities, staying resilient in the face of challenges, and constantly innovating to stay ahead in an ever-changing market. His vision, combined with his deep understanding of the Indian financial markets, has made MOFSL a trusted name in the industry, and his legacy continues to inspire future generations of entrepreneurs.