Startups, VCs rush to digitize India's mutual fund sellers

Startups are rushing to build technology for India's swelling army of mutual fund distributors (MFDs), a segment that is rising alongside the nation's roaring asset management industry.

- Sowmya Ramasubramanian & Mansi Verma

The opportunity hasn't gone unnoticed by venture capital investors, who are pouring money into the space.

Companies like AssetPlus, ZFunds and Wealthy are building digital tools that streamline operations for MFDs, which help investors choose, buy and manage mutual fund schemes, while earning a commission from the fund houses. The startups offer everything from client dashboards and UPIbased payments to handling recurring SIPs and compliance, allowing distributors to scale faster and reach investors beyond major metro areas.

Asset Plus, a Chennai-based startup backed by Zerodha's Rainmatter and InCred, is in talks to raise a $20 million funding round from new and existing investors, according to two people familiar with the matter. The company previously secured $6 million from Fidelity's Eight Roads Ventures in late 2024. Other players which have also attracted capital include ZFunds which raised $3 million from Elevation Capital and PB Fintech chief executive officer (CEO) Yashish Dahiya in December; and Wealthy which secured about $5.5 million from Alpha Wave last May.