Zerodha eyes greater synergies between trading, wealth apps

Bengaluru-based stockbroking platform Zerodha is looking to strengthen its long-term wealth management play and is exploring greater synergies between its trading and mutual fund distribution business units, a senior executive said.

Currently, Zerodha has different applications – Kite and Coin – for stock trading and mutual fund transactions, respectively.

“We are looking to bring in mutual fund transaction flow in the next six to nine months onto Kite,” said Neelesh Verma, product head, mutual funds, at Zerodha. “Some part of the work has already started… We look at a seamless integration between both the apps, but both will exist with a seamless experience,” he said.


This comes at a time when fintech startups are looking to double down on long-term wealth management products to encourage customers to save instead of betting on high-frequency trading.

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Capital markets regulator Sebi is also tightening norms around futures and options trading to ensure people do not erode their wealth while chasing unrealistic gains in the market.

Coin is a direct mutual fund distribution platform. It competes with the likes of Groww, ET Money, Paytm Money and such.

Verma said Zerodha built Kite as an active trading application while Coin is more of a passive investment option.

The plan

The idea behind Coin is to let investors park their funds through regular investments for the long term and grow their wealth. “Coin is being envisaged as a long-term wealth management tool… We have the National Pension Scheme on Coin’s website, we are bringing it onto the application as well,” he said.

With the larger integration between the two business units, Zerodha can channelise a larger section of the audience into Coin, Verma explained.

While Kite has 12-13 million users, Coin has around 2 million users.

Currently, Coin processes around 5 million orders a month with around Rs 5,500 crore worth of investments flowing through on a monthly basis.

Verma said this is growing very quickly. In March, for example, the total transaction was lower at Rs 4,400 crore through around 4.5 million orders.

Currently, Zerodha has around 2 million active mutual fund clients, compared to around 1.2 million in August 2023.

For Zerodha, Coin is a larger wealth tool with the primary objective of getting customers to build a long-term engagement with the platform, Verma said.

While trading is a high velocity business, with mutual funds and SIPs (systematic investment plans), there is a monthly long-term relationship building with the customer. As a direct platform, Coin does not generate any revenue from its core business.

With 7.7 million active clients, Zerodha is the second-largest stockbroking platform, as per NSE data.