Funding Alert

ZFunds Raises INR 25 Cr in Seed Funding to Strengthen Tech and Distribution Network

• ByStartupStory     |    December 4, 2024

Gurugram-based wealthtech startup, ZFunds, has secured INR 25 Cr (approximately $3 million) in a seed funding round led by Elevation Capital. The funding round also saw participation from Yashish Dahiya, co-founder and CEO of PB Fintech.

The fresh capital will be primarily deployed to bolster ZFunds’ distributor network and technology stack. According to Manish Kothari, the co-founder and CEO of ZFunds, the company aims to use the funds to enhance the training facilities for growing first-time distributors and to strengthen the existing distributors’ capabilities, ensuring that these experts remain highly reliable in the market.

“We will deploy the funds into training facilities for the growing first-time distributors and strengthen the ability of existing distributors to ensure the experts are highly reliable in the market,” Kothari told Inc42. He also mentioned that the funds would help the company ramp up its technological development and operations, including sales and marketing efforts.

Founded in 2019 by Kothari and Vidhi Tuteja, ZFunds is positioning itself as a bridge between mutual fund distributors and middle-class investors through its digital platforms. The company claims to be one of the first platforms to offer daily Systematic Investment Plans (SIPs), catering to a larger population who are often restricted from participating in investments due to uncertain and irregular cash flows.

Currently, ZFunds operates in two languages—English and Hindi—and is planning to expand its offerings by integrating five additional Indian languages into its applications over the next two years. This move is intended to make the platform more accessible to a diverse group of users across India.

“We are looking to integrate five Indian languages into our apps over the next two years to make it more accessible to our users,” said Kothari.

The startup’s current headcount stands at 45, and it serves over 60,000 customers through a network of 10,000 micro-entrepreneurs across 4,701 pin codes in India. ZFunds operates two separate applications—one for distributors and another for investors.

The funding round arrives at a time when there is a growing interest in trading and investments among consumers, particularly in the wake of the late backlash to cryptocurrency investments. Wealthtech startups like ZFunds are gaining traction among investor firms who are increasingly looking to tap into the potential of this sector.

In line with this trend, other wealthtech companies have also attracted significant funding in recent months. Wealthtech startup Univest, for example, is in discussions to raise $16 million (around INR 135 crore) to launch an advisory-first brokerage platform under a new entity called Univest Broking. Additionally, Centricity, another Gurugram-based startup, raised $20 million (approximately INR 166 crore) in September to enhance its tech stack and growth team. Bengaluru-based Infinyte.Club also raised $3.6 million (INR 30.2 crore) in August to boost its technology and team expansion.

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