Gurugram-based wealthtech company ZFunds has raised ₹25 crore in seed funding led by Elevation Capital with participation from Yashish Dahiya, Co-founder and Group CEO, Policybazaar Group.
Launched in 2019 by Manish Kothari and Vidhi Tuteja, ZFunds aims to enhance mutual fund investing experience and outcomes for investors by empowering distributors with the right technology and tools.
The recent capital infusion will be strategically allocated to further enhance ZFunds’ technical capabilities, expand its training facilities, and extend its distribution network.
“Mutual fund distribution and financial advisory is no longer a one-person job. Intermediaries must quickly adapt to four key facets of this business: personalised advice and support, technology, regulatory compliance and product research. Today’s customers are well-informed and actively seek these elements from their mutual fund distributors. As their savings grow and become more substantial, their demand for these services will only increase,” said Manish Kothari, Co-Founder CEO, ZFunds.
It is currently serving over 60,000 customers through more than 10,000 micro-entrepreneurs across 4701 pin codes in India.
Technology platform
The platform also provides these agents with in-depth research insights which can help these distributors improve their understanding of the financial markets.
At a time when the mutual fund industry is recording very high inflows, traditional offline distributors of this product are facing the major challenge of competing with online-first direct platforms. To help these players who are important for last-mile delivery of wealth products, ZFunds’ technology platform can power their sales and improve their standard of servicing.
By using this platform, they can track the performance of their assets, suggest new products to their clients and also help them when they need to redeem the funds.
Kshitij Jayakrishnan, Vice President, Elevation Capital, said, “ZFunds combines Manish Kothari’s extensive wealth management experience with Vidhi Tuteja’s exceptional product and technology leadership to create a platform that empowers mutual fund distributors with innovative tools, training and support. By leveraging technology to streamline processes and enhance distributor success, the team is setting a new standard in the industry – and this excited us to partner with them. They’ve demonstrated remarkable execution and efficiency, positioning ZFunds as a transformative player in India’s financial product distribution ecosystem.”
