Zerodha’s Background
Zerodha, founded in 2010 by Nithin and Nikhil Kamath, is an Indian financial services company known for its discount broking model. As of May 2025, it has grown significantly, reportedly reaching a valuation that aligns with the ₹20,000 crore figure mentioned, though exact figures may vary. The company is notable for achieving this without traditional advertising, relying instead on organic growth strategies.
Growth Strategies
Zerodha’s success seems to stem from its flat-fee structure, charging up to ₹20 per trade for equities and derivatives, with zero commission on equity delivery. This low-cost model attracted retail investors, especially in a market where traditional brokers charged higher percentages. Word-of-mouth and referrals were crucial, with nearly 30% of users joining through existing customers, as noted in a January 2025 X post by Nithin Kamath . Educational initiatives like Varsity and YouTube content further built trust and attracted users.
Technology and Innovation
The company’s investment in technology, such as the Kite trading platform and features like personalized APIs introduced in 2025, likely helped maintain a competitive edge. Continuous updates and a user-friendly interface ensured Zerodha stayed ahead, appealing to tech-savvy investors.
Market Impact
Zerodha’s approach has influenced the Indian broking industry, pushing competitors to adopt similar low-cost models. Its revenue grew from ₹4,964 crore in FY22 to ₹8,320 crore in FY24, showcasing financial success without ads.
Survey Note: Detailed Analysis of Zerodha’s Growth Without Traditional Advertising
Introduction and Context
Zerodha, an Indian financial services company founded in August 2010 by brothers Nithin and Nikhil Kamath, has emerged as a significant player in the brokerage industry. As of May 26, 2025, the company is reportedly valued at a level that aligns with the ₹20,000 crore figure mentioned, though precise valuation details vary across sources. Notably, Zerodha achieved this growth without relying on traditional advertising, a strategy that sets it apart in a competitive market. This survey note explores how Zerodha’s innovative business model, customer-centric approach, and technology-driven strategies contributed to its success, drawing on data and insights available up to the current date.
Historical Background and Founding
Zerodha’s journey began with a vision to break barriers in trading and investing, as reflected in its name—a combination of “zero” and “rodha,” the Sanskrit word for barrier. Nithin Kamath, a former trader, identified the high commission rates of traditional brokers as a deterrent for retail investors. Alongside Nikhil, he launched Zerodha with a focus on affordability and accessibility, starting operations on August 15, 2010. Early challenges included competing with established players, but Zerodha’s discount broking model quickly gained traction, particularly among small investors.
Business Model: A Disruptive Approach
Zerodha’s business model is central to its success. Unlike traditional brokers who charge a percentage of transaction value, Zerodha introduced a flat-fee structure: a fixed commission of up to ₹20 for equity trading and derivative transactions, with zero commission on equity delivery trades. This model, detailed in its Wikipedia page.
| Fiscal Year | Revenue (₹ Crore) | Profit (₹ Crore) |
|---|---|---|
| FY22 | 4,964 | 2,094 |
| FY23 | 6,875 | 2,907 |
| FY24 | 8,320 | 4,700 |
This table, derived from financial updates, highlights the revenue and profit growth, underscoring the financial viability of its model without advertising spend.
Growth Strategies: Organic Expansion
Zerodha’s growth without traditional advertising is a testament to its organic strategies. The company relied heavily on word-of-mouth and referrals, with Nithin Kamath stating in a January 2025 X post that nearly 30% of its over 1.6 crore users (16 million) joined through referrals, managing assets worth ₹6 lakh crore
, avoided the high costs of advertising on platforms like Google and Meta, preserving profits. Kamath noted, “If we had advertised, much of our profits would have gone to Google and Meta,” emphasizing the financial prudence of this strategy.
Educational initiatives were another pillar. Zerodha’s Varsity platform and YouTube channel, with over 1.4 million subscribers, offer free content on trading and investing, building trust and attracting users.
Technology and Innovation: Driving Efficiency
Technology has been a cornerstone of Zerodha’s success. The company developed platforms like Kite for trading, Coin for mutual funds, and Console for portfolio management, ensuring a seamless user experience. In 2025, Zerodha introduced features like personalized APIs and daily SIPs, enhancing functionality and attracting tech-savvy investors, allowed Zerodha to scale efficiently, maintaining low operational costs and competitive pricing.
Market Impact and Industry Influence
Zerodha’s success has reshaped the Indian broking landscape. As of 2025, it is among the largest brokers by active client base, contributing significantly to retail trading volumes. Its revenue growth, from ₹4,964 crore in FY22 to ₹8,320 crore in FY24, reflects financial strength without ads. This growth pressured traditional brokers to adopt similar low-cost models, with competitors like Groww and Angel One following suit. Zerodha’s emphasis on transparency and education has also raised industry standards, fostering a more informed investor community.
| Year | Active Users (Million) | Total Users (Million) |
|---|---|---|
| 2020 | 1.3 | – |
| 2022 | 6 (approx.) | 10 (approx.) |
| 2024 (May) | 7.5 | – |
| 2025 (Jan) | – | 16+ |
This table, compiled from various sources, shows user base growth, highlighting the scale achieved without advertising.
Challenges and Future Outlook
Despite its achievements, Zerodha faces challenges, including regulatory changes and market volatility. Nithin Kamath has acknowledged the risks, noting, “Our business can change in a heartbeat due to a change in regulation or markets taking a turn for the worse,” as per a September 2024 business update. To mitigate these, Zerodha has diversified into mutual funds and other financial products, aiming to reduce reliance on trading commissions. Future plans include enhancing technological capabilities and expanding market reach, positioning Zerodha for sustained growth.
Bottom Line
Zerodha’s journey to becoming a ₹20,000 crore company without traditional advertising is a case study in innovation and customer focus. Its low-cost model, organic growth through referrals, and investment in technology and education have not only driven financial success but also transformed the Indian broking industry. As it navigates future challenges, Zerodha’s approach offers valuable lessons for businesses seeking sustainable growth without relying on conventional marketing.
