Gurugram-based wealth technology company ZFunds has raised ₹25 crore in seed funding led by Elevation Capital with participation from Yashish Dahiya, co-founder and CEO of Policybazaar Group.

Launched in 2019 by Manish Kothari and Vidhi Tuteja, ZFunds aims to improve the mutual fund investment experience and outcomes for investors by equipping 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 expand its distribution network.

“Mutual fund distribution and financial advice is no longer the job of one person. Intermediaries must quickly adapt to four key facets of this profession: personalized 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 currently serves over 60,000 customers through over 10,000 micro-entrepreneurs across 4,701 pin codes in India.

Technology platform

The platform also provides these agents with in-depth research information that can help these distributors improve their understanding of the financial markets.

At a time when the mutual fund industry is witnessing very high inflows, traditional offline distributors of this product are facing the major challenge of competing with direct online platforms. To help these important players for last-mile delivery of wealth management products, ZFunds’ technology platform can boost their sales and improve their service level.

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 their funds.

Kshitij Jayakrishnan, Vice Chairman of 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 offers mutual fund distributors innovative tools, training and support. By leveraging technology to streamline processes and improve distributor success, the team is setting a new standard in the industry – and that got us excited about partnering with them. They have demonstrated remarkable execution and efficiency, positioning ZFunds as a transformative player in the Indian financial product distribution ecosystem.