2 days ago
'We didn't have money to advertise': Nithin Kamath on how Zerodha grew without marketing
Zerodha co-founder and CEO Nithin Kamath has shared a candid post on social media, reflecting on how India's largest stock brokerage built its massive user base, without relying on advertising or paid referral incentives. According to Nithin Kamath, the key to driving those referrals wasn't marketing spend.(X/@Nithin0dha)
'When we started Zerodha, we didn't have the money to advertise, not that it would've worked,' Kamath wrote. 'So the only way we could grow was through word of mouth and customer referrals.'
According to Kamath, the key to driving those referrals wasn't marketing spend, but rather building products and services 'that customers would talk about.'
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Read Nithin Kamath's full post here:
Zerodha introduced its referral program back in 2010. Over the years, the structure of the incentives changed multiple times, mainly due to regulatory changes. Kamath pointed out a significant dip in referrals around 2018–19 when regulations restricted the company from offering referral incentives altogether.
Despite the evolving landscape, and even after completely stopping referral incentives, Zerodha's referral numbers have largely remained stable.
'Today, we don't offer any incentives, and despite that, referrals have more or less stayed flat,' Kamath said. He also noted that the data doesn't fully capture the impact of indirect referrals, which continue to contribute meaningfully to Zerodha's growth.
Calling customer love their "real superpower," Kamath's post resonated with many in the business and startup ecosystem, offering a rare example of sustained growth powered by trust rather than advertising.
Zerodha, founded in 2010 by Nithin and Nikhil Kamath, disrupted India's broking industry by introducing zero-commission equity trades and a flat-fee model. Built without external funding, it grew purely through word of mouth, offering a tech-driven platform that now handles over 15% of India's retail trading volume.
How did social media users react?
Several users resonated strongly with Nithin Kamath's reflection on Zerodha's unconventional growth model, applauding the brand's product-first, trust-based approach.
One user pointed out how the company's journey goes 'against the common notion that Indian consumers are not faithful, that they won't move a finger without an incentive,' and added that the sustained word-of-mouth referrals 'show the strong value that customers are experiencing from the product.'
Another commenter said Kamath's post 'resonates deeply,' noting that Zerodha has 'always grown differently from the rest of the industry, built on trust, referrals, and products customers genuinely talk about, not on flashy marketing.'
Others called it a 'strong reminder' that referrals aren't built through gimmicks, but 'earned through real value.'
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