Zerodha CEO Nithin Kamath warns against overselling in startups, calls for realistic expectations

Nithin Kamath, founder and CEO of Zerodha, in a recent interview, shed light on the governance lapses prevalent in some startups, attributing them to the overhyped potential of the Indian market. Kamath emphasised the importance of setting realistic expectations when building businesses and cautioned against misleading investors.

Speaking at Moneycontrol's Startup Conclave on July 7, Kamath voiced concerns about the consequences of overselling during fundraising activities, stating that it can compel founders to continually perpetuate a narrative that aligns with inflated expectations. Under pressure to meet these unrealistic projections, some founders may persist in promoting a story that fails to materialise as intended.

"If you oversell while raising funds, then you're forced to kind of keep selling the story which matches up to the expectations. And, sometimes some founders under pressure, might want to continue saying the story without actually the story being played out," said Kamath.