‘Much of our profits would have gone to…’: Nithin Kamath reveals Zerodha’s strategy to 1.6 cr users

Over 1.6 crore Indians now invest and trade on Zerodha, trusting the platform with Rs 6 lakh crore of assets.What sets Zerodha apart is not just its scale, but how it got there without ever spending a rupee on advertising. :

“India is a tough market to be in,” Kamat said. “If we were to advertise, most of our profits would go to Google and Meta.”

Nearly 30% of Zerodha’s customers come through referrals, a statistic that highlights the platform’s customer-centric approach.

“You don’t look at an ad and decide to invest in a stock. It’s always a friend or a family member who influences you,” Kamath was quoted as saying in an interview.Zerodha adds 2 to 4 lakh accounts every month are exclusively by mouth.

Zerodha’s decision to avoid advertising wasn’t just about cost; it was about philosophy. “Advertising is like cocaine. Once the business gets used to it, growth depends on it,” Kamath said.

Despite its dominance among the English-speaking audience, Zerodha faces challenges in Hindi-speaking regions such as UP and Bihar to bridge this gap and attract new users.

Zerodha’s strength lies in retaining 35-50-year-old customers who prioritize reliability and service.However, cracking the 55-plus demographic has been difficult for Zerodha in 2019-2025 assets under management have grown exponentially.Although there was steady growth in the early years, 2023 was a turning point with a sharp upward trajectory.

Kamath is candid about Zerodha’s unusual path: “Was it the right call to avoid advertising? But it kept us with our philosophy: no spam, no greed, just good service.”