Stable Money’s mutual fund distribution biz suspended by AMFI for 6 months
- ByStartupStory | June 8, 2026
The Association of Mutual Funds in India (AMFI), the self-regulatory body for the mutual fund industry, has suspended the mutual fund distribution activities of Stable Finserv, the mutual fund distribution arm of fintech startup Stable Money, until November 2026, according to an Economic Times report.
Citing sources, the report said that AMFI has barred Stable Finserv from issuing any mutual fund products between May 21 and November 20, 2026. Stable Finserv operates Stable Money, a fixed-income investment platform backed by Peak XV Partners, Lightspeed, Fundamentum, and Z47.
The move has already impacted some users, with investors reportedly receiving transaction failure messages for SIP investments. According to the report, the communication stated that the distributor or agent code linked to the investment had been restricted by the fund house or regulatory authorities.
Responding to Entrackr’s queries, Stable Money said, “We have temporarily paused fresh investments in Gold and Silver mutual funds, including SIPs and lump-sum investments, while certain aspects of our mutual fund distribution operations are under review.”
“We are engaging with the relevant industry and regulatory stakeholders in relation to this review. As the process is ongoing, it would not be appropriate for us to comment further on the specifics at this stage. We remain committed to meeting our regulatory obligations and maintaining transparency with our customers,” the company added.
Founded in 2022 by former Navi executives Saurabh Jain and Harish Reddy, Stable Money offers fixed deposits, corporate bonds, and mutual fund investment products through its platform.
Stable Money has raised around $65 million to date from investors including Peak XV Partners, Lightspeed, Fundamentum, and Z47. The wealthtech startup was last valued at $175 million and is reportedly in talks to raise an additional $15 million at a valuation of around $275 million.
According to industry estimates cited by ET, Stable Money facilitates around Rs 300 crore worth of fixed deposits and Rs 400 crore worth of corporate bond investments every month. Mutual fund investments account for a smaller share of its business, with monthly volumes estimated at Rs 50–80 crore.
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