Zerodha has applied to the Securities and Exchange Board of India for a Category-I merchant banking licence, marking the company’s planned expansion into investment banking and broader capital markets services beyond its core broking business.
According to SEBI’s latest update, the application was filed in April and is currently under process.
If approved, the licence would enable Zerodha to manage and advise on capital market transactions including initial public offerings (IPOs), follow-on public offerings (FPOs), rights issues, and other fundraising activities.
A Zerodha spokesperson said the company would share additional details regarding its business plans once the regulatory approval process is completed.
The development reflects Zerodha’s broader strategy to diversify its business operations and strengthen its presence across India’s expanding financial services and capital markets ecosystem.
Founded as a discount brokerage platform, Zerodha has grown into one of India’s largest retail broking firms and has steadily expanded its offerings across wealth management, mutual funds, investing platforms, financial education, and fintech infrastructure.
The move into merchant banking comes as India’s capital markets continue to witness rising retail participation, increasing IPO activity, startup fundraising, and growing demand for digital-first financial and investment services.
The expansion also highlights the evolving competitive landscape in India’s fintech and brokerage sector, where platforms are increasingly broadening their services across investment advisory, asset management, capital markets, and institutional financial solutions.
Industry observers view the move as part of a larger trend in which technology-driven financial firms are seeking to build integrated financial ecosystems that combine retail investing, wealth management, fundraising advisory, and enterprise financial services under unified digital platforms.
Zerodha’s planned entry into merchant banking could position the company to play a larger role in India’s public market fundraising ecosystem as enterprises, startups, and investors increasingly adopt digital financial infrastructure and technology-led capital market services.
