Leading stock brokerage firm Zerodha is set to invest up to ₹125 crore in its non-banking financial company (NBFC) arm, Zerodha Capital, as part of its expansion strategy. The move comes as the company’s loan book surpasses ₹400 crore, reflecting strong growth in its secured lending business.
Strategic Investment & Growth Plans
Zerodha Capital, which specializes in loan-against-securities (LAS), has been steadily scaling its operations since launching retail lending in 2021. The fresh capital infusion aims to expand its lending portfolio while maintaining a conservative risk posture. The investment is currently pending approval from the Reserve Bank of India (RBI).
Financial Performance & Market Position
The NBFC arm reported a revenue of ₹36 crore for FY25, marking a significant increase from ₹17 crore in FY24. Net profit surged 78% year-on-year to ₹12.5 crore, driven by improved capital efficiency and a shift towards external borrowing. The company maintains a 1.4x debt-to-equity ratio, with an average loan ticket size of ₹6 lakh across 6,400 active clients.
Competitive Landscape & Future Outlook
Zerodha’s expansion comes at a time when India’s top online brokerages are aggressively diversifying beyond traditional broking. Competitors like Angel One and Groww have ramped up their unsecured credit distribution, with Groww’s NBFC arm building a ₹965 crore personal loan book.
Unlike its peers, Zerodha is opting for a slower, secured, and fully in-house lending model, focusing on low-risk, collateral-backed loans. The company is also integrating its systems with mutual fund registrar Cams, enabling lending to a broader client base beyond Zerodha’s existing users.
With a strong financial foundation and strategic expansion plans, Zerodha Capital is poised for sustained growth in the NBFC sector, reinforcing its position as a key player in India’s evolving fintech landscape.
