No ads, no rewards: Nithin Kamath shares how Zerodha still pulls in steady new accounts

Zerodha’s once-mighty referral engine is stalling, and the latest chart tells the story.

Co-founder Nithin Kamath shared the chart on LinkedIn, revealing a sharp drop in referral-driven account openings—from over 40% in 2012 to just around 11% in mid-2025.

“When we started, we couldn’t afford ads,” Kamath wrote. “Referrals were the only way to grow.”

Zerodha launched its referral program in 2010. For years, it powered nearly half of all new accounts. But a regulatory change in 2018–2019 barred referral incentives, triggering a steep decline. “That dip was because a regulatory change disallowed us from paying a referral incentive,” Kamath said.

Despite removing all incentives, referrals still contribute. “Customer love is a real superpower for us,” he added, noting that indirect referrals aren’t captured in the data.

The chart shows some stability post-2020, but the long-term trend is clear: referrals no longer drive Zerodha’s growth like they once did.