Zerodha Now Has Over 1.6 Cr Users Without Advertising: Nithin Kamath

SUMMARY

Zerodha has now over 1.6 Cr users who trade and invest through its platform, managing assets worth INR 6 Lakh Cr

Nithin Kamath said that the company has reached this scale without spending on advertising

Notably, 30% of its users came via referrals from existing customers

Stock broking major Zerodha has now over 1.6 Cr users who trade and invest through its platform, managing assets worth INR 6 Lakh Cr.

Taking to a LinkedIn post, Zerodha founder Nithin Kamath said that the company has reached this scale without spending on advertising, adding that the approach aligns with the company’s philosophy of not encouraging excessive trading or spamming users.

“We may be the only B2C company to have reached this scale without ever advertising. In hindsight, not advertising has helped us stay true to our philosophy of not pushing people to trade, no spam, etc,” he said. 

Notably, 30% of its users came via referrals from existing customers.

Kamath also highlighted that avoiding advertising has helped Zerodha retain profits in a challenging market, steering clear of spending large sums on platforms like Google and Meta.

“India is a very tough market to earn in, and even if we had advertised, we would have given up a lot of our profits to Google, Facebook/Meta, etc.” 

However, as of December 2024, Zerodha trailed behind its direct competitor Groww. The company had an active investor count of 81.2 Lakh on its platform as against 1.32 Cr investors on Groww. 

This comes as the company recently saw its asset management (AMC) subsidiary, Zerodha Fund House, moving past INR 4,000 Cr total asset under management (AUM) with over 4 Lakh investors across its funds. 

Recently the company also moved into the debt segment with “India’s first Growth-NAV-based Liquid ETF” named LIQUIDCASE, Gold ETF, Gold FoFs and launched two equity ETFs as well. 

On the financial front, Zerodha’s net profit surged 88.95% to INR 5,496.3 Cr in the financial year ending March 2024 (FY24) from INR 2,908.9 Cr in FY23.

 Its consolidated revenue also increased 37.16% to INR 9,372.1 Cr from INR 6,832.8 Cr in the previous fiscal.   

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