Traditional approaches using net banking and auto debits have seen limited adoption, as users usually struggle with requirements like debit card numbers, net banking login ID and password etc. which most people don’t remember, leading to high dropout rates during the SIP mandate setup process.
“Our estimates suggest that only 60% of the one-time mandates receive approval, meaning about 40% of all SIPs never begin,” said Manish Kothari, co-founder and CEO of ZFunds. “With UPI AutoPay, we’re leveraging India’s most widely adopted payment system to solve a fundamental problem in the investment landscape. By reducing the SIP setup time to just three seconds and using a familiar authentication method everyone remembers, we’re helping ensure that potential investments aren’t lost at the first step.”
“I want to congratulate ZFunds for launching UPI mandate for SIP customers. Around 65% of all mutual fund folios are being serviced by mutual fund distributors and yet access to UPI autopay for setting up SIPs is not as widely available to them as one would think. This initiative gives MFDs a high-quality tech experience and unmatched convenience,” said Deepak Jain, President and Head – Sales, Edelweiss Mutual Fund.
The integration of the autopay feature into the mutual fund ecosystem aligns with India’s broader financial digitization goals. The new generation of Mutual Fund customers seek assistance over and above technology and they do not want to compromise on either. As the only platform offering this feature free of cost to MFDs, ZFunds is positioning financial advisors to capitalize on India’s digital payment revolution.
The launch comes on the heels of ZFunds’ Rs. 25 crore seed funding round led by Elevation Capital in December 2024, signaling the company’s broader push to streamline mutual fund investing in India. The fresh capital is being deployed to enhance product capabilities, upgrade technology infrastructure, and expand access to investment solutions, reinforcing ZFunds’ efforts to simplify and improve the SIP experience for investors across the country.
The feature is now live on the ZFunds platform and available for investors nationwide.
