Jio-BlackRock Not a Threat to Founders, Says Zerodha’s Nithin Kamath

In a recent public statement, Zerodha co-founder Nithin Kamath weighed in on the much-talked-about Jio and BlackRock joint venture, saying it would expand the Indian stock market rather than pose a threat to first-generation founders in the financial space.

According to Mint, NithinKamath posted on the social media platform X, saying, “Many people asked me about Jio-BlackRock getting a stockbroking license. Firstly, this is great news. If anyone can expand the markets beyond the top 10 crore Indians, it’s probably Jio with all its distribution might.”

Market Expansion Over Disruption

The Jio and BlackRock partnership is seen by many as a strong move into India’s investment and stockbroking space. While such large-scale entries usually raise concerns among smaller and existing players, Kamath expressed a different view.

In a social media post, Nithin Kamath on Jio-BlackRock said that their entry could help grow the overall market rather than shrink the opportunities for other players. He added that their deep pockets and brand strength might attract first-time investors and expand financial awareness in the country.

However, he also raised concerns about the expansion of the Indian stock market. Kamath said, “The biggest issue for the Indian markets is a lack of breadth in participation. We’re largely limited to the top 10 crore Indians.”

Not a Threat to First-Gen Founders

Kamath, a self-made entrepreneur, also addressed the concern about competition. Commenting on the threat to first-generation founders, he stated that he does not see the Jio-BlackRock venture as a danger to founders like himself.

Kamath also shared his perspective on the broking business, stating that Zerodha does not chase ‘vanity metrics’. Instead, he emphasized that the core philosophy of the online brokerage platform is to ‘focus on staying profitable’.

Nithin Kamath said that first-generation founders who have built sustainable businesses over the past decade will likely continue to thrive if they stay innovative and focused on customer experience. He pointed out that scale alone isn’t enough in the financial services space—trust, user experience, and reliability matter just as much.

What the Partnership Brings

The newly formed company, backed by Reliance and BlackRock, aims to make investing and trading more accessible. BlackRock’s stockbroking license marks a significant milestone in this direction. With its approval, the JV is expected to roll out a full suite of retail investment products soon.

The partnership is also expected to push the boundaries of tech-driven trading platforms in India. Analysts believe that the combined force of Jio’s distribution network and BlackRock’s global investing experience could bring a new level of sophistication to India’s retail finance sector.

A Growing Pie for Everyone

Kamath believes that the Indian financial market still has a long way to go in terms of penetration. Only a small percentage of the population currently invests in stocks. Therefore, the entry of larger players like Jio and BlackRock could expand the investor base instead of simply eating into the existing pie.

Talking about the increase in competition due to Jio and Blackrock partnership, he said, “And yeah, I still feel our real competition is going to be more from first-generation founders who are running, breathing, and always thinking about broking. I somehow don’t feel it will really come from incumbents. This is not a business where having deep pockets means you have a large moat.“