Nithin Kamath, founder and CEO of Zerodha, India’s largest brokerage firm, has openly raised concerns over mobile apps in India that gather and misuse personal user data without informing users clearly or seeking their explicit consent. Kamath highlighted how widespread this issue has become, stating that it’s more serious than many users realize.
Apps Secretly Harvesting Your Data?
On the social media platform X (formerly Twitter), Kamath voiced his worry about how the average user’s smartphone has become filled with apps that silently collect personal information. He pointed out that many apps today overload users with unnecessary notifications and messages. He further criticized these applications for intentionally employing confusing designs and deceptive interfaces to manipulate users, calling some apps outright “scammy.” Kamath said,
“Without your knowledge, numerous apps on your phone track and harvest extensive data. Some even monitor what you do across other apps—not just their own. Your most personal data is being harvested without your consent and sold to companies for shady targeting purposes.”
Why Are Apps Misusing Your Data?
According to Kamath, the primary reason behind this hidden data collection is targeted advertising. Companies gather extensive information about user activities to build detailed user profiles. Companies then use this information to deliver highly personalized ads, significantly boosting advertising effectiveness and revenue. In today’s digital economy, personalized advertising has become a critical profit driver for many companies, especially mobile apps.
Moreover, Kamath explained that some apps exploit user data to design features specifically aimed at increasing user engagement and app usage duration. The longer users stay active, the more revenue these apps can generate through advertisements and in-app purchases.
India’s Upcoming Privacy Laws and the Need for Transparency
Kamath’s warning arrives at a critical time as India prepares to implement stronger data protection regulations through the Digital Personal Data Protection Act (DPDPA). Growing concerns over user privacy, digital consent, and lack of transparency in how apps handle personal data underline the urgency of these regulations.
As public awareness around digital privacy continues to grow, Kamath’s comments reflect a broader call for stricter privacy standards and greater transparency from app developers and technology companies in India.
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