Zerodha's asset management company (AMC), Zerodha Fund House, is reportedly in talks with multiple investors to raise $100 million in funding.
According to sources familiar with the matter, the discussions are in the early stages and may take several months to finalize. If successful, this would mark the first instance of external funding for a company within the Zerodha Group. Founded in 2010 by brothers Nithin and Nikhil Kamath, Zerodha has operated as a bootstrapped entity since its inception.
The potential funding round comes as Zerodha intensifies its presence in the mutual fund sector amid increasing competition. Last year, Zerodha's AMC arm launched three mutual fund schemes following the final approval from SEBI to commence operations in August 2023.
Zerodha Fund House operates as a joint venture between Zerodha and invest tech platform Smallcase. The company aims to offer transparent and affordable mutual fund offerings, focusing primarily on passive investments.
Nithin Kamath, Zerodha's co-founder and CEO, highlighted the motivation behind starting a mutual fund, emphasizing the need to increase participation in Indian markets. The move to raise external capital also comes amidst competition from platforms like Groww and the entry of Reliance-backed Jio BlackRock, which has allocated a $300 million war chest to capture a significant share of the Indian asset management market.
