Investment Platform Startup ZFunds Scores INR 25 Cr Funds, Will Boost Its Tech Stack

Elevation Capital led a seed fundraising round for Gurugram-based wealthtech startup ZFunds, which raised INR 25 crore (about $3 million).

ZFunds, founded in 2019 by Kothari and Vidhi Tuteja, uses digital channels to connect mutual fund distributors with middle-class investors. The company claims to be one of the first platforms to offer all daily SIPs, catering to a bigger audience that is unable to participate in investments owing to uncertain and inconsistent cashflow.

Yashish Dahiya, the cofounder and CEO of PB Fintech, also participated in the investment round.

Related: Online Stock Broker Groww Sees Profit Soar 4X, 2X Revenue in FY24

“We will deploy the funds into training facilities for growing first-time distributors and strengthen the ability of existing distributors to ensure the experts are highly reliable in the market,” said ZFunds cofounder and CEO Manish Kothari to media.

He also stated that the company will use the new funds for technological advancement, as well as to expand its operations, such as sales and marketing.

According to Kothari, the company currently employs 45 people.

It is worth noting that ZFunds now offers two applications to its customers, one for distributors and the other for investors.

ZFunds currently runs in two languages, English and Hindi.

Kothari noted that the business plans to integrate five Indian languages into its apps over the next two years to make them more accessible to its consumers.

The organization claims to serve over 60,000 consumers through 10,000 micro-entrepreneurs in 4,701 pin codes across India.

This development comes at a time when there is a considerable increase in consumer interest in trading and investing amidst the late-stage downturn in crypto returns. Investors are so encouraged to make bets on wealthtech enterprises.

For example, wealthtech startup Univest is in talks to fund $16 million (approximately INR 135 crore) in a mix of equity and debt to launch an advisory-first brokerage platform under a new entity called Univest Broking, a week ago.

Meanwhile, Centricity, based in Gurugram, received $20 million (about INR 166 crore) in September to expand its technological stack and build its personnel. Furthermore, in August, Bengaluru-based Infinyte.Club raised $3.6 million (INR 30.2 crore) to strengthen its technology stack and grow its personnel.