Zerodha applies for Sebi merchant banking licence to expand beyond broking, mutual funds
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Online brokerage firm Zerodha has applied to the Securities and Exchange Board of India (Sebi) for a merchant banking licence, signalling its intent to broaden its financial services portfolio beyond broking and asset management.
The application was submitted through its wholly-owned subsidiary, Zerodha Corporate Advisors Pvt Ltd, and was filed with the regulator on April 27, according to Sebi records. The proposal is currently under review.
If approved, the licence would allow Zerodha to enter the investment banking space by managing initial public offerings (IPOs), advising companies on fundraising, and offering a wider range of merchant banking services.
The move marks another strategic expansion for the fintech-led brokerage, which currently serves more than 1.6 crore customers and processes billions of orders annually through its trading platform.
Beyond broking, Zerodha has already diversified into asset management through Zerodha AMC, strengthening its presence across investment products. The merchant banking push also comes amid evolving regulatory norms.
In December 2025, Sebi revised rules governing merchant bankers by increasing net worth and liquid net worth requirements and introducing a framework for segregation of regulated activities through separate business units.
Zerodha is not alone in seeking entry into the segment. According to Sebi’s website, at least 12 additional applications are under consideration, including those from InCred Capital Financial Services, Neo Wealth Management and Societe Generale Securities India.
Separately, Zerodha has also been expanding access to investment products through partnerships. Last week, on-demand convenience platform Swiggy announced a partnership with Zerodha Fund House that allows delivery partners to invest a portion of their earnings into mutual funds through the rider application.
Under the initiative, delivery partners can begin investing with as little as ₹100. Investments are routed directly into schemes managed by Zerodha Fund House, while users can track and manage their portfolios through the fund house’s WhatsApp-based interface.
Commenting on the partnership, Zerodha Fund House CEO Vishal Jain said the collaboration demonstrates how technology can simplify investing and improve access for mass-market users. The merchant banking application, if cleared, would further deepen Zerodha’s footprint across India’s financial services ecosystem and strengthen its ambitions beyond retail broking.