Zerodha‘s asset management company (AMC), ‘Zerodha Fund House,’ is reportedly in discussions with multiple investors to secure up to $100 million in external funding. A joint venture between the renowned stockbroking firm Zerodha and the investment platform Smallcase, Zerodha Fund House received approval from SEBI last year to launch its asset management venture.
While official confirmation from the company is pending, this potential funding marks a significant departure for the Zerodha Group, which has relied on self-funding since its establishment in 2010. According to a report by Entrackr, these discussions are still in the preliminary stages and could extend over several months, holding the promise to fortify Zerodha’s position in the fiercely competitive stockbroking and asset management landscape.
The fundraising initiative aligns with Zerodha’s objective to broaden its mutual fund portfolio, which saw the launch of three schemes in October last year. Amidst escalating competition from rivals like Groww and the advent of newcomers such as Reliance-backed Jio BlackRock in the Indian asset management sector, Zerodha aims to diversify its investment offerings and bolster its asset management arm, Zerodha Fund House.
Managed by Zerodha Assets Management Private Limited, Zerodha Fund House, in collaboration with Smallcase, has introduced two index funds and a Liquid and Gold ETF, emphasizing transparent and cost-effective mutual fund choices for investors. This strategic move underscores Zerodha’s commitment to broadening market participation and delivering diverse wealth management solutions alongside its core stockbroking services.
In the dynamic Indian stockbroking landscape, where major players like Zerodha, Groww, AngelOne, and Upstox vie for dominance, Zerodha’s pursuit of external funding and expansion into mutual fund offerings reflects its strategic intent to sustain its competitive edge, particularly in light of Groww recently surpassing Zerodha in user base. As new entrants join the fray and established players diversify their product offerings, the intensifying competition underscores the evolving nature of India’s asset management industry.