'Customer love is a real superpower for us': Nithin Kamath on how Zerodha grew without advertising

Zerodha co-founder and CEO Nithin Kamath, in a recent social media post, reflected on how his company built a massive user base over more than a decade without spending on marketing.

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The billionaire said the brokerage firm’s growth was driven not by advertising, but by customer referrals and trust in its products and services.

“When we started @zerodhaonline, we didn’t have the money to advertise, not that it would’ve worked,” Kamath wrote on X (formerly Twitter).

“So the 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.”

Zerodha, which launched in 2010, introduced a referral program that initially offered incentives. However, regulations forced changes over the years, including a dip in 2018–19 when a regulatory shift disallowed referral payments. Despite such changes, Kamath said referrals remained consistent and now continue even without incentives.

“Today, we don’t offer any incentives, and despite that, referrals have more or less stayed flat,” Kamath said, adding that indirect referrals remain significant. “Customer love is a real superpower for us.”

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… pic.twitter.com/sEsYROXPO5

— Nithin Kamath (@Nithin0dha) August 19, 2025

Netizen reactions

Kamath's post drew strong responses from users praising Zerodha’s growth model.

“Zerodha ads hardly or never appear in any social media apps… This makes me believe that it’s authentic and quality-driven. It’s the only app I trust and use,” one user wrote.

“Distribution isn’t always about how much you can burn on ads. It’s about whether your product is so clean and reliable that customers almost feel proud to spread it,” said another.

“Referral or any marketing is just sone pe suhaaga anyway. Superior product and tech experience = evergreen moat tbh,” a third noted.

As a Zerodha user, I can say this makes complete sense. If referrals stay flat even without incentives, it shows the product itself is the best marketing.

Customer trust > any marketing spend.

— Asif Iqbal 🇮🇳 (@aasifiqbal2728) August 19, 2025