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In a recent social media post, Zerodha co-founder and CEO Nithin Kamath shared insightful reflections on the importance of timing and perseverance in building a successful business. Drawing a parallel to Nvidia CEO Jensen Huang, who survived three decades of challenges before achieving breakthrough success, Kamath emphasized how similar elements shaped Zerodha’s rise in India’s financial market landscape. This candid commentary sheds light on Zerodha’s humble beginnings, steadfast philosophy, and the fundamental role of luck in entrepreneurship.
Key Highlights from Nithin Kamath’s Perspective
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Jensen Huang’s Journey: Kamath noted that Jensen Huang survived for 30 years in the tech business before hitting the right timing and place for Nvidia’s explosive growth, especially linked to the recent AI boom. For long periods, Huang’s direction was questioned, demonstrating resilience and patience.
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Zerodha’s Start with Minimal Investment: Zerodha began in 2010 as a partnership firm with a total investment of around ₹10 lakh (2.5 lakh for website, 5 lakh office setup, and 2.5 lakh miscellaneous expenses). The company leveraged free or low-cost infrastructure such as the NSE Now trading platform and an affordable back-office vendor to build its operations practically from scratch.
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Middle-Class Origins: Kamath highlighted his team’s middle-class background with “no rich uncles,” underlining that Zerodha’s journey was self-made and rooted in perseverance without any major external financial backing.
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No IPO Plans and Customer First Approach: Kamath disclosed that Zerodha has no plans for an initial public offering (IPO). This decision stems from a commitment to independence—freeing the company from investor exit pressures—and maintaining policies like no spam and no tracking, which could be compromised in a public company.
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Timing and Luck as Key Success Factors: Kamath stated that success in business boils down to “getting timing right,” backed heavily by luck. Zerodha’s rise aligns with India’s broader economic growth and supportive policies, reinforcing that external macro factors also play a vital role.
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Long-Term Commitment: Kamath emphasized that his involvement in financial markets spans about 25 years, with 15 years dedicated to building Zerodha. This long-term commitment and love for the business are foundational to its compounding success and sustainability.
Detailed Insights on Zerodha’s Journey and Philosophy
Initial Setup and Financial Discipline
Zerodha started at a time when regulatory norms favored smaller firms via lower exchange deposit requirements (₹90 lakh versus ₹1.5 crore). This allowed Zerodha, initiated as a partnership firm, to enter the brokerage market by managing costs prudently with low initial capital. The company’s near-zero cost approach for critical infrastructure laid a strong foundation for scaling with minimal financial burdens.
Customer-Centric Business Model
The absence of external funding means Zerodha operates without the conventional pressures of providing investor returns by a fixed timeline. This autonomy naturally allows it to prioritize customers’ interests, evident in policies like strict no spam and no tracking, which Kamath believes create the company’s “real moat” or sustainable competitive advantage.
Timing in Business Growth
Kamath’s reflection on Nvidia’s Huang serves as a powerful metaphor that success is not instantaneous but often the outcome of long-term resilience and being positioned right in terms of market dynamics. Zerodha’s trajectory coincided with India’s financial modernization and digital penetration, enabling it to capitalize on the right products and initiatives at an opportune time.
A Statement on Values Over Valuations
Kamath openly admits that much of the growth story has involved discipline, compounded effort, and luck rather than relying on injections of capital or rapid scaling through IPOs. By staying private, Zerodha aims to keep business values and customer trust at the core, rather than driven by external market valuations or shareholder demands.
Financial Performance Context
To reinforce the company’s strength, Zerodha crossed ₹8,370 crore in revenue and approximately ₹4,700 crore in profits in FY24. Its financial arm, Zerodha Capital, also recorded significant revenue and net profit growth in FY25, underscoring sustainable profitability alongside careful business governance.
Source: Times of India, Business Today, Economic Times
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