Nithin Kamath, co-founder and CEO of Zerodha, shared insights on the company’s unique journey — one powered almost entirely by word-of-mouth and customer trust.
In a digital-age dominated by aggressive advertising and marketing campaigns, Zerodha’s rise to one of India’s largest stockbrokers offers an interesting narrative. When the Bengaluru-based fintech firm launched in 2010, it lacked the financial muscle for traditional advertising. But rather than seeing this as a hurdle, the team focused on building a product and customer experience worthy of notice.
“When we started @zerodhaonline, we didn’t have the money to advertise, not that it would’ve worked. So that only way we could grow was through word of mouth and customer referrals, and the only way that was possible was to offer products and services that customers would talk about,” said Nithin Kamath in a social media post on X on Tuesday, August 19.
Zerodha’s Referral Program
From the outset of its operations, Zerodha ran a referral program, rewarding users who introduced others to the platform. Over the years, however, this model had to evolve — especially in 2018-19. “…A regulatory change disallowed us from paying a referral incentive.”
However, what’s remarkable is that despite the regulatory changes — and the eventual removal of referral incentives altogether — referral-based signups have remained steady.
Kamath highlighted that even without monetary rewards, users continue to recommend Zerodha organically, signalling trust and preference for the stockbroker’s products.
According to the company’s website, over 1.6 crore clients place billions of orders every year through its investment platforms, contributing over 15% of all Indian retail trading volumes. According to data from the app store, Zerodha has over 1 crore downloads.
“Today, we don’t offer any incentives, and despite that, referrals have more or less stayed flat,” Nithin Kamath revealed.
He also pointed out that the data doesn’t fully capture the “significant chunk of indirect referrals,” underscoring the deeper network effect built on customer loyalty.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
