The move aligns with Zerodha’s strategy to make Coin its long-term, low-risk investment platform
Zerodha’s investment arm, Rainmatter Capital, is set to lead a new round of funding in fintech startup Blostem, according to sources. The partnership will be formalised soon, though the exact size of the investment has not yet been confirmed.
Blostem’s existing investors include AC Ventures, Mobikwik, and Delhivery founder Kapil Bharti.
Coin to Add Digital Fixed Deposits
Zerodha’s Coin app—a platform for long-term investments such as mutual funds, sovereign gold bonds, government securities, and the National Pension Scheme (NPS)—will soon enable users to invest in fully digital fixed deposits (FDs).
The new feature will allow consumers to open FDs without having to create a savings account with the bank offering the deposit. These FDs will likely be issued by Small Finance Banks, which generally offer higher interest rates than traditional commercial banks.
Coin currently lets investors buy direct mutual funds with zero commissions or platform fees and manages assets worth ₹1.6 lakh crore. It also supports Systematic Investment Plans (SIPs), making it Zerodha’s core product for passive, long-term investing.
Philosophy and Product Segmentation
The Bengaluru-based discount broker aims to make Coin a hub for fixed-income and low-risk investment products, complementing its Kite app, which focuses on active trading.
“Kite remains the short-term or active investment platform, while Coin is designed for passive, long-term investing—where consumers can simply invest and revisit after a few years,” a source said.
The source added that separating short-term and long-term products helps investors avoid impulsive trading decisions and achieve better long-term returns.
“This is why Coin remains a standalone app for SIPs, NPS, and mutual funds, unlike other wealth-tech startups that combine everything in one app for cross-selling,” the source noted.
Fintech Industry Sees Rising Interest in FDs
The move comes amid growing interest in digital FDs across India’s fintech ecosystem.
Recently, Peak XV Partners was reported to be leading a $25 million funding round in wealth-tech startup Stable Money, which also offers digital fixed deposits.
Other platforms—such as smallcase and WintWealth (both backed by Rainmatter Capital), and Flipkart-backed super.money—have also begun offering digital FD products, although these are not their primary offerings.
New Offerings Amid Profit Dip
Zerodha’s latest product initiatives, including the upcoming US stock investment launch next quarter, come at a time when the company has reported its first decline in revenue and profits in over a decade.
The addition of FDs to Coin’s lineup signals Zerodha’s intent to strengthen its passive investment ecosystem, offering users a diversified, low-risk portfolio under one platform.
