“Once we began Zerodha, we didn’t have the cash to promote, not that it might’ve labored,” Kamath wrote on X (previously Twitter). “So the one manner we may develop was via phrase of mouth and buyer referrals. The one manner that was attainable was to supply services and products prospects would speak about.”
Zerodha launched its buyer referral programme when it launched in 2010. Through the years, incentives below the programme have gone via a number of adjustments because of evolving SEBI regulations. Kamath pointed to 2018–19 as a part when referrals dipped considerably after the Securities and Trade Board of India disallowed cash-based referral incentives.
Additionally Learn: Youngsters want to become Nikhil or Nithin Kamath but don’t want to use Zerodha: Ankur Warikoo
“We began our referral program once we launched in 2010, and since then, the incentives have modified quite a few instances due to rules. A basic instance is the dip in 2018/19, when a regulatory change disallowed us from paying a referral incentive,” Kamath mentioned.
Regardless of these hurdles, referrals have continued to play a major function in Zerodha’s buyer acquisition. In line with Kamath, even after the corporate stopped providing referral incentives altogether, the contribution of referrals to new account openings has remained regular.“Right this moment, we don’t provide any incentives, and regardless of that, referrals have roughly stayed flat,” he famous. He additional added that oblique referrals, which aren’t captured in seen information, symbolize a big share of recent prospects, underscoring the depth of belief and loyalty the platform enjoys.Kamath summed it up by saying that buyer love is an actual superpower for Zerodha, positioning it as a fintech participant that scaled into India’s largest inventory brokerage with out spending closely on conventional promoting or buyer acquisition.“Additionally, this picture doesn’t seize the numerous chunk of oblique referrals, and buyer love is an actual superpower for us,” he concluded.
Kamath additionally lately highlighted how the low cost dealer is grappling with a demat market share loss at the same time as belongings below administration (AUM) proceed to develop. The corporate is addressing the problem by creating content material, although it stays uncertain about its impression thus far.
Learn Extra: Zerodha’s demat market share shrinking, says founder Nithin Kamath. How is it coping?
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)
