Zerodha has revolutionized the investment industry since its launch, making it a household name. As Zerodha makes its biggest referral payout, there is curiosity about its amount which remains undisclosed. Reports suggests that it is huge, reaffirming the company’s dominance in the industry.
No details were spilled regarding the amount, however, the CEO told Business Standard that almost a fourth of the company’s customers have been acquired through the referral program as he mentioned, “The total outgo is a decent amount. We have acquired 20-25 percent of our customers through this route.”
CEO of Zerodha, Nithin Kamath shared on Twitter, “A key reason behind the success of @zerodhaonline is that we were able to grow thanks to all the referrals from our users. Over 10 lakh customers have referred their friends and family, and today, we just made our largest referral payout to our customers.”
A key reason behind the success of @zerodhaonline is that we were able to grow thanks to all the referrals from our users. Over 10 lakh customers have referred their friends and family, and today, we just made our largest referral payout to our customers.
— Nithin Kamath (@Nithin0dha) April 19, 2023
As per Kamath money paid in this way helps the company bag new customers and labeled it as one of the key reasons for the success of Zerodha. If you meet the conditions, then Zerodha pays 10% of all brokerages generated from referred clients. One of these conditions is that the referred person must activate their Demat account within 60 days.
Also, clients can only withdraw money from their account if the referral brokerage generated exceeds the sum of 1,000 rupees. Also, at least 5 referrals need to have been made through an account to be eligible for withdrawal of this sum.
Zerodha platform has been one of the most profitable startups in India and they posted a profit of 2,094 crores in FY 2022. This was 87% more than the profit earned in the preceding year.
The CEO has made bold claims by mentioning that the company expects to have a revenue of almost 6,000 crores and a net profit of at least 2,500 crores in FY23.
As Zerodha makes its biggest referral payout, the amount hasn’t been disclosed. However, if anyone was worried about the financial health of the company then they can rest easy because Nithin reassured everyone by mentioning, It doesn’t hit the profits much. The scheme has been in place from the beginning.
Source: Nithin Kamath Tweet