Zerodha is preparing to enter the investment banking business after applying for a Category I merchant banking licence from the Securities and Exchange Board of India. The application, filed through Zerodha Corporate Advisors, is currently under review by the market regulator.
According to a report by Business Standard, if approved, the licence will allow Zerodha to offer merchant banking services such as managing initial public offerings, rights issues, qualified institutional placements, and corporate finance advisory mandates. The report added that the move would mark another step in the company’s efforts to diversify beyond its core online broking business.
Zerodha Expands Beyond Online Broking
Over the past few years, Zerodha has expanded into adjacent financial services through businesses such as Zerodha Capital, its asset management venture, and startup investment platform Rainmatter. Entering merchant banking would further broaden its financial services portfolio and strengthen its presence across the capital markets ecosystem.
The company has confirmed that it has filed the application with SEBI but said it will share more details about its investment banking plans once it receives regulatory approval. The licence remains subject to the regulator’s review and approval process.
What Zerodha’s Investment Banking Entry Could Mean
Zerodha’s planned expansion comes as India’s primary market shows signs of recovery, with companies increasingly exploring public listings and other capital raising avenues. A merchant banking licence would position the company to participate in IPO execution and broader corporate fundraising activities.
The application also reflects increasing interest in the merchant banking business, with several financial institutions seeking similar licences from SEBI. If approved, Zerodha would join a competitive market of investment banks and advisory firms serving companies across public offerings and corporate finance transactions.






