Stock broking platform Zerodha is preparing to enter the investment banking business as it looks to deepen its presence across India’s financial services ecosystem.
The Bengaluru-based company has applied to the (SEBI) for a Category-I merchant banking licence. The application, filed in April, is currently awaiting regulatory approval.
Confirming the development to businessline, a Zerodha spokesperson said, “We have filed an application for the merchant banking (Category-I) licence with SEBI. We’ll be able to share more about our business plans once we receive the licence.”
The licence will enable Zerodha to manage initial public offerings (IPOs), advise companies on equity fundraising, and provide a range of merchant banking and corporate advisory services.
The move comes amid a strong revival in India’s primary markets, with a steady pipeline of start-ups and new-age companies preparing to go public over the next few years.
The foray marks another step in Zerodha’s strategy of expanding beyond its core stockbroking business. In recent years, the company has diversified into mutual funds through Coin, asset management, lending, startup investments via Rainmatter, and international investing. Earlier this month, it also introduced fixed deposits on the Coin platform, allowing customers to invest in FD schemes offered by partner banks and monitor their holdings through a single interface.
Entry into merchant banking is also expected to intensify competition in a market currently dominated by established players such as JM Financial, Kotak Mahindra Capital, Axis Capital and ICICI Securities.
Despite the diversification push, Zerodha reported a moderation in its financial performance in FY25, with revenue from operations stood at ₹8,847 crore and net profit stood at ₹4,237 crore.