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‘People aren’t opening accounts with us’: Nithin Kamath asks founders for advice in candid post
Zerodha's Nithin Kamath discussed the company's growth challenges, highlighting a decline in new account openings.
Zerodha co-founder Nithin Kamath took to social media with an unusually candid post this week, opening up about growth at Zerodha and asking fellow founders and marketers for advice. Kamath revealed that while Zerodha’s Assets Under Management (AUM) share is increasing, indicating that wealthier users continue to trust the platform, the number of new demat accounts being opened with the company is declining.
“The people with money are sticking with us, but many others aren't opening accounts with us,” he wrote, suggesting that younger investors and those from tier 2 and tier 3 cities may be choosing other platforms instead.
However, Kamath added that Zerodha has certain principles in place that it refuses to compromise on. “We won’t advertise. We won’t offer account-opening incentives," he added.
Kamath posed a direct question to fellow entrepreneurs and marketers: “Can brands still rely on the same tactics and strategies that worked in the past, or do changing times demand new strategies?”
The post was quickly flooded with suggestions. "I've not done massive research into this but most of your content with Zerodha and its initiatives that I see are English. They are premium. Maybe it's time to invest in creators/channels that people want to hear in their language," a user suggested.
Others praised Kamath for his candid approach. "Wow. This is the reason why a lot of people admire you. Sticking to the core values while managing the business is very tough in this competitive world," said one of them.
