Zerodha Shuts Zero1 Network Amid SEBI Finfluencer Scrutiny
On April 22, Zerodha confirmed it has shut down its Zero1 Network creator initiative, citing regulatory uncertainty, in response to queries from Moneycontrol.
The initiative, launched over two years ago, was designed as a creator-led platform to simplify finance, health, and investing topics.
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What Zero1 Built Before Its Shutdown
Zero1 operated as a structured creator network in partnership with LearnApp, a Rainmatter-backed company.
The platform scaled significantly:
- Over 600 videos produced
- More than 10 crore cumulative views
- Around 8 lakh YouTube subscribers
It worked with creators including Varun Mayya, Sonia Shenoy, and Revant Himatsingka, among others.
Under the model:
- Creators received monthly payments
- Zerodha provided research, studio, and editing support
- Content ownership remained with creators
- Distribution carried Zero1 branding
Regulatory Context Behind the Shutdown
Zerodha said:
“There was a lot of regulatory uncertainty around the entire initiative, and we took a call to wind this down.”
The regulatory backdrop includes increasing scrutiny by the Securities and Exchange Board of India on financial influencers.
In August 2023, SEBI released a consultation paper on regulating finfluencers, proposing restrictions on associations between regulated entities and unregistered financial influencers. The paper highlighted concerns around:
- Investor harm from unverified advice
- Lack of disclosure in promotional content
- Blurred lines between education and recommendation
Subsequent regulatory signals through 2024 continued to emphasize tighter oversight of such arrangements. Zerodha did not cite any specific directive that directly led to the shutdown.
Creator Contracts and Non-Compete Structure
A key feature of the Zero1 Network was its non-compete clause, which restricted creators from partnering with other brokerage firms during the contract period.
People familiar with the structure said:
- Zerodha did not exercise editorial control over content
- Creators operated independently beyond branding
- Channels remained under creator ownership
The exact duration and scope of the non-compete clause could not be independently verified.
What Happened to Creators
Creators associated with Zero1 were informed in advance that the initiative would be wound down by March.
A creator associated with the network, who requested anonymity, confirmed that the program ended in March and said the transition was communicated in advance.
Following the shutdown:
- Channels continue to operate independently
- Zero1 branding has been removed
- Platform-level support has ended
It is not publicly known how many creators were part of the network or the financial terms of their agreements.
Zerodha’s Shift to In-House Content
Zerodha said it will continue its financial education initiatives with a revised approach:
“We will continue to expand these channels; the only difference is that we will have full control on the content that is put out.”
This indicates a shift toward:
- Fully owned content platforms
- Direct editorial oversight
- Reduced reliance on external creator partnerships
Role of LearnApp and Rainmatter
Zero1 was operated as a joint initiative between Zerodha and LearnApp, which runs the platform’s YouTube channel.
LearnApp is backed by Rainmatter, Zerodha’s investment arm, which has invested over ₹1,500 crore across more than 160 startups, according to company disclosures.
LearnApp did not respond to a request for comment on the future of Zero1-related operations.
FAQs
Why did Zerodha shut down Zero1?
Zerodha cited regulatory uncertainty in response to Moneycontrol queries, without pointing to a specific rule.
What is SEBI’s stance on finfluencers?
In August 2023, SEBI released a consultation paper proposing tighter rules on associations between regulated entities and unregistered financial influencers.
What was the Zero1 Network?
It was a creator-led content initiative backed by Zerodha and LearnApp, focused on financial education through digital platforms.
What happens to creators now?
Creators continue to run their own channels independently without Zero1 branding or platform support.
Is LearnApp continuing Zero1 operations?
The Zero1 YouTube channel is run by LearnApp, but its future structure has not been disclosed.
