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3w ago

Zerodha Rules Out IPO as Nithin Kamath Reaffirms Bootstrap Origins and Customer-First Moat

Kamath says staying private lets the broker uphold a strict no‑spam, no‑tracking approach without investor exit pressure.

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'Had no rich uncles': Nithin Kamath on Zerodha's rise and why it won't IPO
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Overview

  • In a detailed X post responding to a Reddit query, Kamath reiterated that Zerodha has no IPO plans and has never taken external funding.
  • He said the total cash outlay to build the brokerage was about ₹10 lakh, including ₹2.5 lakh for the website, ₹5 lakh for office interiors, and the rest for miscellaneous costs.
  • Zerodha began as a partnership firm to lower exchange deposit requirements (₹90 lakh versus ₹1.5 crore) and relied on the NSE Now platform and near‑zero‑cost back‑office support to keep early costs down.
  • Citing policies such as no spam and no tracking, Kamath argued that remaining private enables decisions that prioritize customers even when they may not maximize short‑term business metrics.
  • He framed the company’s rise as the result of long‑term compounding and timing, noted FY24 profits of ₹4,700 crore on ₹8,320 crore in revenue, and posted as rivals eye listings and players like Jio‑BlackRock enter broking.