ZFunds

ZFunds is a wealthtech platform transforming mutual fund distribution for India’s mass market. The company bridges mutual fund distributors and middle-class investors through digital platforms, focusing on Tier 2/3 cities and “Bharat” beyond metros. ZFunds’ unique value proposition is its hybrid model: combining local, trusted human advisors with scalable technology to make mutual fund investing accessible, jargon-free, and tailored for first-time investors.

Key Milestones

• 2019: Founded by Manish Kothari and Vidhi Tuteja in Gurugram, Haryana, with a mission to democratize mutual fund investing for India’s middle class and underserved markets.

• 2020–2022: Built a dual-app platform for investors and distributors, enabling paperless onboarding and SIP registration in multiple languages.

• 2022: Launched daily SIPs in collaboration with top AMCs, pioneering flexible investment for irregular earners.

• 2024: Raised ₹25 crore (~$3 million) in seed funding led by Elevation Capital and Yashish Dahiya (Policybazaar), with a focus on tech stack and distributor training.

• 2025: Serves 60,000+ customers through 10,000+ micro-entrepreneurs across 4,700+ pin codes, with AUM surpassing ₹1,000 crore.

• Recognition: Hosted multi-city events with AMC partners like DSP, Bandhan, and ICICI Prudential; recognized for empowering distributors and expanding mutual fund access.

Unique Value Propositions

• Human+Tech Model: Blends human advisory with digital platforms, making investing “Sahi” (right) and “Asaan” (easy) for first-time and small-town investors.
• Distributor Empowerment: Provides free training, tech tools, and highest commission payouts to 10,000+ distributors.
• Daily SIPs: First to offer daily SIPs, catering to users with irregular cash flows.
• Multi-Language Support: Platform and content in English, Hindi, and expanding to five more Indian languages.
• Zero-Cost Onboarding: Free, paperless distributor empanelment and instant UPI mandate for SIPs.

Core Products and Services

Mutual Fund Distribution

• Wide range of mutual funds from 42+ AMCs, distributed via a network of certified agents.

• Daily, monthly, and flexible SIPs starting as low as ₹100.

Distributor Platform

• Free onboarding, training, and digital tools for mutual fund distributors.

• Advisor app for portfolio management, client tracking, and real-time transaction updates.

Investor Platform

• Simple, multilingual app for paperless KYC, investment, and tracking.

• WhatsApp-based onboarding and support for non-tech-savvy users.

Research and Advisory

• In-house research team curates SIP packs and fund recommendations, focusing on risk-return.

Educational Content

YouTube channels and local events for investor/distributor education in regional languages.

Business Model & Revenue Streams

Revenue Generation

• ZFunds earns commissions (typically 1–1.25% annually) from AMCs for investments routed through its platform.

• Commissions are split with distributors, who receive up to 60% of the payout.

Business Unit Contribution

• Mutual fund distribution is the primary revenue stream; insurance and digital gold are planned future additions.

• As of FY24, 90% of revenue comes from mutual fund commissions, with the rest from value-added services and training.

Customer Segmentation

• B2C: Urban and semi-urban retail investors, mostly first-time mutual fund buyers.

• B2B: Mutual fund distributors, retired bankers, LIC agents, and micro-entrepreneurs serving their communities.

Top Clients & Partnerships

AMC Partnerships

• Collaborates with 42+ Asset Management Companies, including DSP, Bandhan AMC, ICICI Prudential, HDFC, and Tata Mutual Fund.

Distribution Network

• 10,000+ micro-entrepreneurs/distributors across 4,700+ pin codes.

Tech and Payment Partners

• Integrated with BSE StAR MF, NSDL, and UPI for secure, seamless transactions.

Strategic Investors

• Elevation Capital, Yashish Dahiya (Policybazaar), and other prominent angels.

Client Concentration Risk

• Highly diversified with presence in 4,700+ pin codes and a broad AMC partner base, reducing reliance on any single client or geography.

Future Outlook & Strategic Priorities

• Product Expansion: Adding insurance, digital gold, and FDs to the platform.

• Geographic Penetration: Deepening reach in Tier 2/3 cities and expanding language support.

• Tech Innovation: Scaling UPI AutoPay and instant SIP setup; enhancing app features for both advisors and investors.

• Regulatory changes: in mutual fund distribution and commission structures.

• Competition: direct-to-consumer and DIY investment platforms.