Gurugram-based wealthtech startup ZFunds has raised INR 25 Cr (around $3 Mn) in a seed funding round led by Elevation Capital, with additional participation from PB Fintech’s cofounder and chief executive Yashish Dahiya.
The funding round also saw participation from PB Fintech’s cofounder and chief executive Yashish Dahiya.
“We will deploy the funds into training facilities for the growing first-time distributors and strengthen the ability of existing distributors to ensure the experts are highly reliable in the market,” ZFunds’ cofounder and CEO Manish Kothari .
Additionally, the company will use the fresh proceeds for technological development, while also ramping up its operations, including sales and marketing, he added.
Founded in 2019 by Kothari and Vidhi Tuteja, ZFunds operates as a bridge between mutual fund distributors and middle class investors via their digital platforms. The company claims itself as one of the first platforms to offer all daily SIPs to cater to the larger population that is limited from participating in investments due to the uncertain and irregular cashflow.
Kothari further said that the company’s current headcount stands at 45.
It is to note that ZFunds currently has two applications for its users, where one is engaged by distributors and the other used by investors.
ZFunds, presently, operates in two languages, namely English and Hindi.
The startup is looking to integrate five Indian languages into its apps over the next two years to make it more accessible to its users, Kothari added.
The company claims to serve more than 60,000 customers through 10,000 micro-entrepreneurs and over 4,000 distributors across 4,701 pin codes in India.
This development comes at a time when there is a significant rise in interest for trading and investments among consumers amid the late backlashes of crypto returns. Investor firms are thus encouraged by the potential of the wealthtech companies to make their bets.
For instance, wealthtech startup Univest is in discussions to raise $16 Mn (around INR 135 Cr) in a mix of both equity and debt, to roll out an advisory-first brokerage platform under a new entity named Univest Broking, a week ago.
