Courtesy - Moneycontrol
Nithin Kamath, founder and CEO of Zerodha along with his brother Nikhil Kamath can take home a salary up to ₹100 crore each according to a unique resolution approved by the company’s board which was reported the previous week.
Nithin has to stave off pressure from investors who wants a piece of the country’s largest and most profitable pure-play brokerage, Zerodha.
During an interview, Nithin mentioned that they were lucky enough to have scaled up before the lockdown when it first hit the nation. For others, who had to scale up, weren’t able to due to the lockdown as procuring servers, getting lease lines up took extremely long. Nithin mentioned adding up 3 million plus demat accounts the previous year which vaguely grabs 10-12% of the unique market share.
While talking about offers, Nithin says that every single big investor he met was rejected of his monetary offer as he didn’t require money simply because Zerodha doesn’t have customer acquisition costs. As said by Nithin, they don’t have any big ambitions and none of them wants to fly in a private jet or own a yacht.
The only reason they can get away by not spending money on customers is because the product does the talking, as said by Nithin Kamath when asked about cost still being a differentiating factor.
Responding to Zerodha’s future 5-10 years down the line he stated, “there are bigger problems in the country. We need to figure out ways to generate employment.” He further added that there are only few people with whom the “wealth is concentrated and only a few people in this country make money.” Unless there are jobs for the large millennial population, it is a tough time for the country to grow, he added.