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Stock broking platform Zerodha is preparing to enter the investment banking business as it looks to broaden its presence across the capital markets ecosystem. According to reports, the Bengaluru-based company has applied to the Securities and Exchange Board of India (SEBI) for a Category-I merchant banking licence. The application was filed in April and is awaiting regulatory approval. If approved, the licence will allow Zerodha to manage initial public offerings (IPOs), advise companies on raising capital, and provide merchant banking services such as issue management and corporate advisory. The move marks another step in Zerodha's expansion beyond its core broking business. Over the years, the company has diversified into mutual funds, wealth management, asset management, lending, startup investments through Rainmatter and international investing. A merchant banking licence would position Zerodha to offer a broader suite of capital market services and compete for IPO and fundraising mandates as India's primary market remains active. The move could also intensify competition in the merchant banking industry, which is dominated by established players. The company has confirmed to the media that it has applied for the licence but has not disclosed further details about its plans.
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