Discount brokerage giant Zerodha has made a strategic move to diversify beyond its core broking business by investing $5 million in the research platform Tijori. This investment is aimed at developing advanced, AI-driven intelligence tools for a growing base of mutual fund and cash-market investors, according to a senior company official.
From Active Traders to Long-Term Investors
Somnath Mukherjee, Vice President of Corporate Development at Zerodha, revealed that the platform's customer profile has undergone a significant transformation. For the first six to seven years after its 2010 inception, Zerodha was dominated by active traders. However, a major shift began around 2016.
Today, over 80-85% of Zerodha's 1.6 crore customers are focused purely on cash equities and mutual funds. The platform holds approximately ₹6 trillion in equity assets and claims to handle about 15% of daily retail exchange volumes in India.
This change mirrors a broader national trend where equity investments are booming. The surge is powered by increased household savings, rising retail participation, and domestic mutual funds with ample capital. Factors like growing incomes, easier digital onboarding, and muted returns from traditional investment products have nudged more Indians towards the markets.
Mutual Fund Momentum and the Institutional Push
Data on mutual fund inflows underscores this shift. Investments in growth or equity-oriented schemes have seen dramatic growth, rising from ₹18,358.08 crore in the April-June 2023 quarter to a peak of ₹1,18,986.10 crore in October-December 2024. After a brief cooldown, momentum is returning, with the July-September 2025 quarter witnessing inflows of ₹1.06 trillion.
Zerodha's stake in Tijori is positioned to help this expanding cohort of mutual fund investors make more informed, research-backed decisions. Mukherjee stated that while Zerodha currently serves only retail clients, Tijori is building an enterprise-grade product for institutional players like asset managers, mutual funds, Portfolio Management Services (PMS) providers, and Alternative Investment Funds (AIFs).
"So the enterprise solution felt like a natural fit, almost a value-added service we could offer to this segment," Mukherjee explained. He added that Zerodha's direct mutual fund platform, Coin, which connects with every major Asset Management Company (AMC) in India, could be a conduit to strengthen these institutional relationships and layer on Tijori's value-added services.
AI as a Force Multiplier for Enterprises
For Tijori, a significant portion of the fresh $5 million capital is earmarked for developing its AI-driven products, which are showing the strongest growth and user traction. Siddharth Hegde, co-founder of Tijori, clarified that while retail users currently form the bulk of its customer base—with 80-90% coming via Zerodha—the company is actively broadening its enterprise footprint.
Hegde emphasized that AI will not replace human analysts but will massively expand their capabilities. "Analysts won't be confined to following just 20 names, they could easily monitor 100 companies in real time," he said, highlighting the efficiency and scale that sets Tijori apart from competitors offering only fragmented free data.
Tools like Tijori's Concall Monitor are already fully enterprise-focused. Over time, the company expects its customer mix to shift to roughly 60% enterprise and 40% retail. "Over time, we expect 60-70% of our products to be for enterprises, with the remaining products spread across Zerodha and Tijori for retail investors," Hegde projected.
The partnership also opens doors for future collaboration. Mukherjee indicated that Zerodha may consider increasing its stake in Tijori if the alliance proves successful. For now, with Zerodha's investment providing ample runway, Tijori is not actively seeking another funding round and is even gearing up for an entry into new markets, including the United States.
This strategic investment comes at a time when Zerodha's turf is increasingly competitive. It faces rivals like Groww, popular with first-time investors, tech-first discount brokers Upstox and Angel One, and low-cost alternative 5Paisa. Traditional full-service brokers like ICICI Direct, HDFC Securities, and Sharekhan also remain relevant for investors seeking comprehensive support and research.
Zerodha's bet on Tijori signals a clear intent to evolve from a pure-play brokerage to a diversified financial services platform, leveraging artificial intelligence to cater to the sophisticated needs of both retail and institutional investors in India's booming capital markets.
