Zerodha set to invest up to Rs 125 crore in NBFC arm as loan book tops Rs 400 crore

Stock trading and investing platform Zerodha is preparing to infuse Rs 100–125 crore (approximately $15 million) into its non-banking financial company (NBFC) arm Zerodha Capital (ZCPL) as part of its effort to expand the loan-against-securities (LAS) portfolio and widen access to non-broking users, people familiar with the company’s plans told Moneycontrol on May 29.

The capital infusion by the promoters - currently pending RBI approval - is expected to support ZCPL’s plans to scale up lending in a measured manner while maintaining its conservative risk posture.

While the firm declined to comment on the fundraise, Abhilash SR, the head of Zerodha Capital confirmed that the company is steadily ramping up operations and exploring to tap new clients.

The secured lending business, which began active retail operations in 2021, posted a revenue of Rs 36 crore, and a net profit of Rs 12.25 crore in FY25 which is up from Rs 7.2 crore the previous year, Abhilash said. The company attributes this growth to improved capital efficiency and its shift to external borrowing until recently, ZCPL had operated solely on internal funds.

This push comes at a time when India’s top online brokerages are aggressively diversifying beyond pure-play broking. Angel One is ramping up its unsecured credit distribution via a partner marketplace, with disbursals crossing Rs 700 crore, while Groww’s NBFC arm has built a Rs 965 crore unsecured personal loan book targeting salaried millennials.

With the regulatory environment tightening around futures & options (F&O) and restrictions on monetising idle client funds, digital investment platforms are increasingly turning to other segments that can be potential growth drivers.

Unlike its peers, Zerodha claims to be opting for a slower, secured, and fully in-house model.

"As of March 31, our LAS book had grown to nearly Rs 400 crore, with a 1.4x debt-to-equity ratio and a portfolio-level loan-to-value (LTV) under 40 percent. The average ticket size stood at Rs 6 lakh across around 6,400 active clients," Zerodha Capital's Abhilash said.

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