Zerodha co-founder Nithin Kamath issued a warning about pyramid schemes in India, highlighting their persistence and the risks they pose to investors. Kamath shared his personal experience of being involved with a pyramid scheme for nearly two years before building Zerodha, one of India's largest stockbroking platforms, in a post on X on June 25, 2026, following his viewing of the web series Pyramid Scheme on Prime Video, according to livemint.com.
Kamath recounted that during his late teens, he was searching for ways to raise money to fund his trading account and got entangled in what he later recognized as a pyramid scheme. He cautioned that many investors are misled by promises of easy profits through recruitment-based opportunities, which often result in significant financial losses. Kamath urged individuals to remain vigilant and skeptical of such schemes to avoid falling victim to them, as detailed by livemint.com.
The warning comes amid ongoing concerns about the prevalence of pyramid schemes in India’s financial landscape, which continue to lure unsuspecting investors with unrealistic returns. Kamath’s experience underscores the importance of financial literacy and awareness in protecting investors. Zerodha’s rise as a major player in the stockbroking sector contrasts with the deceptive practices of pyramid schemes, emphasizing the need for legitimate investment avenues, according to livemint.com.
Kamath’s message serves as a reminder to investors about the dangers of quick-money schemes and the value of cautious, informed investing. His disclosure of personal involvement adds credibility to his cautionary advice. The post on X on June 25, 2026, marks a notable moment where a leading industry figure publicly addresses the risks associated with pyramid schemes in India, livemint.com reported.