Groww destroying Zerodha?
Zerodha is a brokerage firm that is one of the most successful in the Indian startup ecosystem. It was founded by Nithin and Nikil Kanmath in 2009. Rather than spending money on advertising, Zerodha focuses on their product and wants traders to be able to trade without barriers.
The company is currently valued at over $2 billion as of November 2021. The company, which handles 15–18% of the trading volumes in the country, has around 10 million customers, making it one of the largest online stock brokerage firms in India.
Zerodha's Marketing Strategy
Zerodha didn’t spend money on advertising and marketing; it was mostly spread by word of mouth.
Word-of-mouth marketing is when products or services are recommended by others who have used them and are satisfied with them. One of the most effective kinds of advertising is word-of-mouth because 88% of consumers prefer recommendations from friends over mostly from traditional media.
USP for Zerodha
- Simple trading tools,
- low and effective broker fees,
- A constant effort to educate people through Zerodha’s Varsity
But how Groww destroying Zerodha?
Groww was founded in 2016 by four former Flipkart executives: Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal. and it is one of the fastest-growing brokerage firms in India. In the brokerage industry, it controls nearly 12% of the market. How Groww going rapidly that much faster ?
So how is it expanding so quickly?
Groww cleverly distributed their funnel to social media and YouTube like that. One side Zerodha trying to educate people using Zerodha varsity. Grow cleverly used various platforms to educate their audience and then convert them as a client.
Groww cleverly distributed their funnel to social media and YouTube like that. On the one hand, Zerodha is attempting to educate people through Zerodha varsity. Grow cleverly used various platforms to educate their audience and then convert them into clients.
None of the companies had this much of a subscriber base, which is in the stock market industry. Even further, Groww is attempting to educate people in their native languages such as Hindi, Tamil, Telugu, Malayalam, and Kannada.
Some of the numbers that the Groww Company had on YouTube are shown below.
Matrix Partners India was established in 2006, and invests across a variety of sectors including consumer technology, B2B, enterprise, fintech, among others.
Matrix Partners began in Boston in 1977, and today invests actively in the USA, India and China
Founder: Avnish Bajaj and Rishi Navani Founded in: 2006 Top investments in outside India : Canva, Flex, Hubspot, Oculus, Quora, Zendesk Top investments in India : Country Delight, itilite, DSLR Technologies, RocketLane, Chumbak, DailyHunt, Dukaan, FIITJEE Sector: Stage: Early Stage Venture, Late Stage Venture
Despite fierce competition in the brokerage industry. Groww cleverly played their cards on YouTube and social media to acquire their customers. Groww has major advantages over any other brokerage firm that funnels diversification.
Finding the right platform to play your cards
Try to educate what you sell, no matter what you sell.