Zerodha Co-Founder Nithin Kamath Shares Why His Firm Doesn’t Advertise

The start-up head also revealed that his company doesn’t advertise as it is a ‘good place to be in’ to not worry about customers in terms of acquisition costs and lifetime value

The founder also pointed out that the increasing number of stock brokerages in the market is a good thing

Source : Zerodha website

Zerodha co-founder Nithin Kamath recently talked about the advantages of not advertising his company. The start-up head also revealed that his company doesn’t advertise as it is a ‘good place to be in’ to not worry about customers in terms of acquisition costs and lifetime value.

Sharing his views via a post on the social media platform, X, Kamath said, “I often get asked, both internally and externally, why we don't advertise. It is a good place to be when you don't have to look at customers in terms of acquisition costs (CAC) and lifetime value (LTV).”

I watched a cricket match after a long time, and damn! Every fourth ad is that of a brokerage firm. Sign of good times for the markets😀

I often get asked, both internally and externally, why we don't advertise.

It is a good place to be when you don't have to look at customers…

— Nithin Kamath (@Nithin0dha) May 21, 2024

Kamath said that this strategy gives his firm the freedom to not have to push the customers to take a trade. “We can stay spam-free, not have to sell life insurance as an investment, and more,” he added.

The founder also pointed out that the increasing number of stock brokerages in the market is a good thing. “I watched a cricket match after a long time, and damn! Every fourth ad is that of a brokerage firm. Sign of good times for the markets.”

The post attracted a lot of attention from users, where some agreed with the trading platform’s viewpoint of not advertising, while others said that the option should be considered in the future.

One of the users wrote, “I think going forward you will need to advertise. This segment had zero competition when you started but now it has cut throat competition and need recall value to remain relevant.”