Zerodha applies for merchant-banking licence to diversify beyond broking

The Bengaluru-based brokerage has applied for a merchant-banking licence, signalling a push into new financial-services lines beyond its core trading platform. Zerodha has more than 68 lakh users, according to the report.

— Source publishedWed, 22 Jul, 2026, 08:00 IST·First seen Wed, 22 Jul, 2026, 10:20 IST·Source Inc42 · Buzz

What happened

Zerodha seeks a merchant-banking licence to diversify beyond broking, while IndiaMART posted stronger Q1 FY27 earnings and plans working-capital finance. The

Key facts

  • Zerodha has 68 lakh+ users and purportedly accounts for 10% of retail and HNI AUM
  • IndiaMART Q1 FY27 net profit: ₹172.2 crore, up 12% YoY
  • IndiaMART Q1 FY27 operating revenue: ₹414.4 crore, up 11% YoY
  • IndiaMART generated 26 million business enquiries; supplier storefronts reached 8.8 million and paying suppliers 2.18 lakh
  • Ather raised about ₹1,300 crore through a QIP and plans a total ₹2,500 crore fundraise
  • 30 Sundays raised about $6.7 million (₹61 crore) in Series A funding
  • Zaggle will acquire a 20% Unobanc stake for up to ₹7.97 crore
  • Vartis Platforms FY26 profit: ₹96.2 crore, up 183% YoY; operating revenue: ₹338 crore, up 43% YoY
  • Cent charges around ₹27,500 for its annual diagnostic protocol and plans 20-25 centres

Why this matters

Merchant banking could position Zerodha for capital-markets advisory, issue management and corporate relationships, expanding its strategic adjacency to listed and growth-stage companies.

What to watch

  • SEBI approval status, licence conditions and disclosed capital or governance commitments.
  • Senior appointments with merchant-banking or investment-banking credentials.
  • Registration of a dedicated merchant-banking subsidiary or changes in Zerodha's corporate structure.
  • First disclosed IPO, SME IPO, rights issue, buyback or fundraising mandate.
  • Evidence of new IPO-distribution features or issuer-facing products on Zerodha platforms.
  • Regulatory guidance on conflict management between retail broking platforms and merchant-banking activities.
  • Build or hire a senior merchant-banking, compliance, legal and issuer-coverage team.
  • Create Chinese-wall and conflict-of-interest processes separating broking research, client order flow and issuer advisory activity.
  • Pursue early mandates in SME IPOs, mainboard IPO co-management, rights issues, buybacks or qualified institutional placements.
  • Integrate IPO discovery, application and allotment-related customer journeys more tightly into Zerodha's retail platforms, subject to regulatory rules.
  • Use the new vertical to develop relationships with founder-led companies, venture investors and mid-market corporates.

Also reported by