In a move that signals its growing ambitions beyond retail broking, Zerodha has invested approximately $2 million in PensionBox, a B2B pension technology platform, in what both the firms are calling a strategic joint venture. The partnership brings together Zerodha’s distribution muscle and brand recall with PensionBox’s proprietary technology for corporate pension management, targeting a massive untapped market of Indian companies that have largely stayed away from structured pension offerings for their employees. The timing couldn’t be more opportune. Recent regulatory changes by the Pension Fund Regulatory and Development Authority (PFRDA) have made corporate pension products more attractive than ever before, while the new tax regime has created unexpected demand from employees seeking additional tax-saving instruments. The Pension Fund Regulatory and Development Authority has systematically removed barriers that previously made corporate National Pension System (NPS) products less attractive. The most significant change has been the relaxation of lock-in rules, bringing them in line with the popular Public Provident Fund (PPF) scheme. According to Somnath Mukherjee, VP of corporate development at Zerodha and Rainmatter Capital, who is leading the partnership from Zerodha’s side, the regulator has reduced the lock-in period to 15 years, mirroring the PPF structure. “This makes the product… Read MoreInc42 Media
