Zerodha is preparing to expand beyond its retail brokerage and wealth management roots by entering investment banking. The firm has applied for a Category‑I merchant banking licence from SEBI, with the application filed in April 2026 and awaiting clearance. Once approved, Zerodha will be authorised to manage IPOs, FPOs, corporate restructuring, and mergers & acquisitions.
The company’s footprint already spans mutual funds, asset management, lending, international investing, and startup funding through Rainmatter. Recently, it also introduced fixed deposits on its Coin platform, signalling ambitions to become a one‑stop investment hub.
However, merchant banking remains dominated by established giants like JM Financial, Kotak Mahindra Capital, Axis Capital, and ICICI Securities. Competing with these entrenched players will be challenging. Yet, Zerodha’s massive retail distribution network could give it a unique advantage in securing lucrative IPO mandates.
This bold move positions Zerodha as a potential capital markets powerhouse, aiming to disrupt a space long controlled by institutional heavyweights. Success will depend on regulatory approval and its ability to leverage retail strength against legacy dominance. The outcome could reshape India’s investment banking landscape in the coming years.
