Nithin Kamath points out a way for startups to get millions of brand ambassadors

Zerodha co-founder and CEO Nithin Kamath

Zerodha co-founder and CEO Nithin Kamath on Thursday noted although startups spend a lot of money on marketing, they have ignored one of their biggest assets and a way to get millions of brand ambassadors.

Taking to Twitter, the billionaire entrepreneur wrote, "Startups spend a lot of effort and money on marketing. But I think B2C startups globally that have IPO'd in the last few years have ignored one of their biggest assets—an opportunity to turn millions of retail shareholders with influence on social media into brand ambassadors."

"From the time a founder raises money from VCs and PE, they are primed to think about maximizing valuations. This means building a narrative that can price in the best-case outcome for the business. But what's needed to do well as a listed business is different."

From the time a founder raises money from VCs and PE, they are primed to think about maximizing valuations. This means building a narrative that can price in the best-case outcome for the business. But what's needed to do well as a listed business is different. 2/4

— Nithin Kamath (@Nithin0dha) January 5, 2023

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Also offering tips on how to not spook investors, Nithin Kamath suggested following slow compounding for the long term, avoiding max valuation in the short term. "That means underselling and overdelivering, not the other way around," he tweeted. Being transparent, and not overselling are great ways to reduce the volatility of the stock price pre and post-IPO.

"To do well is to create wealth with the least volatility," Kamath said. "Doing this well can make shareholders feel like owners and help reduce customer acquisition costs, the biggest cost for B2C businesses."

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