Zerodha’s asset management company (AMC) arm is discussing with investors to raise up to $100 million as reported by Entrackr

Zerodha’s asset management arm, Zerodha Fund House, is in early discussions with multiple investors to secure funding of up to $100 million for its AMC business,” a source informed Entrackr. The talks are in early stages and could take several months to conclude, according to the report.

Should the deal materialize, it will mark the first instance of a Zerodha Group entity pursuing outside investment. Founders Nithin and Nikhil Kamath have maintained a bootstrapped approach since the inception of Zerodha in 2010.

However, Zerodha Fund House clarified to Inc42 that it is not presently in discussions for external funding.

This development coincides with Zerodha’s expansion in the mutual fund sector amid increasing competition.

In October of last year, Zerodha’s asset management company (AMC) introduced its first three mutual fund schemes following SEBI’s approval in August 2023. Zerodha Fund House, a joint venture with smallcase, aims to offer transparent and cost-effective mutual fund options.

CEO Nithin Kamath stated that their mutual fund venture addresses the challenge of limited market participation, emphasizing the need for broader investor engagement.

The decision to seek external funding coincides with heightened competition from Groww and Jio BlackRock. Groww recently launched its own mutual fund scheme and continues to attract new investors, while CRED acquired Kuvera to enter the wealth management sector, challenging Zerodha and Groww.

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