'Zerodha wouldn't happen today': Nithin Kamath reflects on startup challenges in 2025

Zerodha was founded in August 2010 by Nithin Kamath and his brother Nikhil Kamath.

Nithin Kamath, co-founder and Chief Executive Officer of Zerodha, said he would not have launched the online brokerage platform in the current market landscape of 2025, citing oversaturation in the sector. In a candid response during a recent Q&A session on Zerodha’s TradingQnA platform, Kamath explained that the brokerage industry has become too crowded, and replicating Zerodha’s original success in today’s environment would be nearly impossible.

“We would not have started Zerodha. The market is so crowded, and being another one doing the same thing wouldn't work. Also our product has evolved over the last 10 years, I don't think it would make sense to attempt to beat the best today on day 1 of the business,” Kamath wrote.

The Bengaluru-based entrepreneur elaborated on his views in a post shared on X (formerly Twitter), where he included a screenshot of his response to the Q&A. Instead of launching Zerodha in 2025, Kamath said he would have taken a different approach within the financial services sector, potentially focusing on a differentiated offering with a stronger value proposition.

“I would have probably built a brokerage with some other moat probably. Charge higher and offer a better research maybe. Of course the customers would have been much lesser, but you could still earn significantly,” he added.

I was asked recently on Tradinqna Hi Nithin sir, I have one specific question for you: What would have you done differently if you had to start Zerodha in 2025 all over again with decades of experience considering the competitions.Me: We would not have started Zerodha pic.twitter.com/hfdcYVXP4V
Nithin Kamath (@Nithin0dha) April 16, 2025

Kamath’s remarks drew widespread attention online, with his post going viral on X. Many users engaged in the comments section, supporting his views and highlighting the challenges of entering saturated markets without significant innovation.

“Starting a business in an overcrowded market without a 10x better idea is entrepreneurial suicide. Unless you can outthink, outbuild, or outserve the biggest players—You're not disrupting, you're drowning. Play smart, not just brave,” one user commented.

Another wrote, “In 2025, both you & the world around you have changed. The public’s needs are different, and so is your thought process. Given these changes, I believe you might have pursued something entirely different today, perhaps never stepping into the brokerage space at all."

A third user stated, “Timing is everything in business. I think this applies to so many industries now. The easy opportunities get saturated quickly, forcing new entrants to either innovate dramatically or find specialised niches."

Zerodha was founded in August 2010 by Nithin Kamath and his brother Nikhil Kamath with the aim of removing barriers to entry for retail traders and investors in India. Despite limited initial resources, the brothers bootstrapped the venture and gradually built the company into one of India’s most respected and widely used trading platforms.

However, Kamath’s comments reflect the evolving dynamics of the Indian brokerage sector. The space, once dominated by a few players, is now brimming with competitors including Groww, Upstox, Angel One, and others—all offering direct-to-consumer trading and investment platforms.

One user on X noted, “You already have a research arm and a platform with wide reach. To survive this competition, even the leader needs to aggressively occupy such niche areas. Go for it.”