Zerodha CEO Nithin Kamath has some advice for fintech startups

Billionaire startup hero Nithin Kamath, whose discount broking firm Zerodha remains bootstrapped and profitable, today said fintech startups focusing on investing shouldn't spend too much money acquiring customers. “This forces startups to do random things to monetize and generate activity, which in turn deteriorates the product,” he said.

Kamath said a bad product would need constant spending to acquire and retain users. “All the "user first" philosophies go out of the window when they're forced to monetize by pushing customers to transact in risky financial products. Maybe this holds good for startups in other sectors too,” he tweeted.

Started 12 years ago in Bengaluru by siblings Nithin and Nikhil Kamath, Zerodha is India's largest stock broking platform. In FY22, the unlisted company posted an almost 60 per cent year-on-year jump in both its profits and revenues at around Rs 1,800 crore and Rs 4,300 crore, respectively.

Having got an AMC license from market regulator Sebi, Zerodha is planning to launch its own mutual fund soon.