'Many aren't opening accounts with us': Nithin Kamath wonders if old tactics still work at Zerodha

Zerodha is witnessing a shift in its user base—more wealth, fewer new accounts. Despite an uptick in assets under management (AUM), India’s largest retail broker is grappling with a loss in demat account market share, prompting CEO Nithin Kamath to question the relevance of traditional marketing strategies.

In a post on X (formerly Twitter), Kamath laid out the dilemma: “Our AUM share is growing (people with more money trust us), but our demat share is shrinking (fewer new accounts).” He noted that while wealthier clients are staying, younger investors—especially from tier 2 and 3 cities—appear to be opening accounts elsewhere.

Kamath posed a direct question to marketing professionals and startup founders: “Can brands still rely on the same tactics and strategies that worked in the past, or do changing times demand new strategies?”

Zerodha’s approach has long stood apart. It refuses to advertise or offer account-opening incentives, even as rivals aggressively target new users with cashback and referral schemes. Kamath acknowledged these self-imposed limits make acquisition tough: “The challenge is that once people pick a platform, they rarely switch.”

In response, the company is leaning into content creation but admits the results are hard to quantify. “So, how do you grow when you can't play the traditional acquisition game? The obvious answer may be 'content,’ and we have significantly improved on it, but it's hard to measure the impact,” Kamath said, ending with, “If you were in our shoes, what would you do?”

To widen its appeal and deepen trust, Zerodha also launched a non-commercial initiative to digitize old physical share certificates—even for non-clients. The goal: help Indians reclaim stranded wealth, often inherited through family legacies. Kamath said the idea stemmed from a surge in public queries about forgotten paper shares.

Meanwhile, Zerodha Kite—its flagship mobile-first trading platform—continues to serve core users focused on low-cost, tech-led investing. But Kamath’s post signals a deeper concern: relevance in a rapidly evolving market where the next wave of investors may be choosing more visible, incentivized alternatives.