India, home to 1.4 Bn people, has seen a large population moving towards economic well-being over the years. The increasing participation of retail investors across financial markets has partially driven this growth and impacted every nook and cranny of the top investment sectors and categories.
Take mutual funds, for instance, which are popular among all and sundry, given the convenience of systematic investment plans (SIPs). The SIP assets under management (AUM) reached an all-time high of INR 13.54 Lakh Cr in November 2024, while monthly SIP inflows saw a 48% YoY increase, underscoring people’s confidence in mutual funds as a wealth-building tool.
But here is the flip side. According to industry reports, financial literacy in India remains alarmingly low, and considering the country’s total population, less than 4% of individuals invest in mutual funds or equity-linked assets. This leaves significant room for growth for mutual funds and mutual fund distributors (MFDs) – the financial professionals who guide individuals in buying, selling and managing investments.
One thing is clear. In spite of widespread digital access and numerous robo-advisors and do-it-yourself investment tools, MFDs are critical if mutual funds want to increase their share of the pie. As a Deloitte report said, potential investors in semi-urban and rural India rarely use complex financial tools. And they cannot be reached through traditional digital media for fear of being duped. However, human intermediaries can bridge these gaps in trust, knowledge and technology if a multifunctional platform supports them.
Set up by IIT-Madras alumni Vishranth Suresh and Awanish Raj, that’s precisely what AssetPlus has built for MFDs and their customers and prospects.
“MFDs are the growth drivers of the mutual fund industry. So, instead of creating an interface for direct plans [where people handle their investments without intermediaries], we have developed a purpose-built platform to equip mutual fund distributors with the tools, training and technology [TTT] required for success. These three T’s are the core pillars of our offerings to help MFDs streamline operations, scale efficiently and grow their reach through a reliable digital presence,” said Vishranth, the cofounder and CEO of AssetPlus.
Unlike traditional wealth management platforms, where mutual fund distributors rely on a patchwork of tools and technologies, AssetPlus offers a unified app and a suite of services covering mutual fund distribution, corporate fixed deposits, term and health insurance products and retirement planning via the National Pension Scheme.
The platform supports all aspects of wealthtech, including the KYC tool to verify customer identity, transaction management, advanced portfolio management services (PMS) and more from a single dashboard. Additionally, MFDs can quickly access more than 40 major asset management companies (AMCs) listed on the app and stay updated on compliance, market trends and fund house performances for value-added advisory.
By providing support for a wide range of financial products and a customisable app, the platform ensures that distributors can cater to diverse client requirements, thus increasing their market relevance and earning potential.
AssetPlus claims it has onboarded over 13K MFDs who collectively manage the financial needs of more than 1 Lakh investors, mutual fund assets worth more than 4500 Cr and a SIP book of 80 Cr. Distributors and their current and prospective customers can access the platform at no cost, ensuring that overheads burden no one. Revenue is generated through transaction fees paid by the AMCs concerned when transactions are done on the platform. A portion of these fees is shared with mutual fund distributors.
The fintech startup has witnessed a revenue growth of 125% between FY 23 and FY 24. In addition to this, AssetPlus hopes to reach a target of 1 Lakh Cr AUM in the next 5-7 years. Recently, AssetPlus received funding from Eight Roads (backed by Fidelity) and is backed by institutional investors like Rainmatter, InCred and Venture Catalyst.
How Passion & On-Ground Realities Reshaped Wealthtech At AssetPlus
What started as occasional conversations between two college friends – one passionate about business and finance and the other about technology – has grown into a robust fintech solution after several twists and turns.
Vishranth and Awanish showed entrepreneurial drive even in their early years. The former tutored JEE aspirants that helped him to have a sustained source of income during his college days. Once he could manage to meet his essential needs with this income, he started investing this money in SIPs and received insightful guidance from an uncle who was a mutual fund distributor.
The hands-on mentorship piqued the IIT grad’s interest and instilled in him a belief that wealth creation should be straightforward, accessible and empowering for all. He also became a qualified MFD. Meanwhile, Awanish was already developing apps while in college and was sought after by other startup founders in the ecosystem. He created apps like MediBuddy and Lyrical.
Their professional paths eventually converged at Hyperverge, a startup where Awanish delved into cutting-edge tech innovations and Vishranth excelled in business development. However, their real passion was blending finance and technology to simplify complex processes and enable people to take control of their financial future. So, the duo took a bold leap and left their stable jobs to set up AssetPlus.
The Struggle, The Pivot And The Product
Starting AssetPlus was no easy feat. Money was the perennial problem as the founders had just INR 2 Lakh in savings while a competitor secured INR 100 Cr in funding. Also, technology alone could not fully address the nuanced queries of investors. Hence, the DIY investment models would not bring in users en masse. Realising this, the founders put the ‘human experts’ (read MFDs) at the core of their business and decided against taking on advisory roles as they initially planned.
The duo had initially planned on building the company in Bengaluru but chose to relocate back home to Chennai to curb high costs associated with the former city and spent the next 18 months creating an integrated platform tailored to enhance the efficiency and effectiveness of mutual fund distributors. The final product was ready by April 2017, and in September of that year, AssetPlus reached INR 1 Cr worth of AUM.
When SEBI banned upfront commissions for mutual fund intermediaries in October 2018, it was a dampener for the entire community. Although many advisors found it difficult to adapt, the fintech venture found an opportunity to help MFDs cope with the changing landscape.
Its USP is the convenience of a seamless, all-in-one platform for solutions and support across critical areas such as operations, compliance, portfolio reporting and investor management. With features like financial calculators, KYC screening and more, the platform streamlines day-to-day tasks for maximum efficiency. AssetPlus drives business development by equipping MFDs with exclusive research on best-performing financial products, professionally designed marketing materials and regular training sessions to stay ahead of the curve.
“We have built a tech-enabled ecosystem from a single hub in Chennai so that MFDs can thrive pan-India. Moreover, our platform has empowered all stakeholders. Mutual fund distribution is an attractive career option now, as MFDs on our platform have a sustainable source of income. Investors using AssetPlus also gain from expert, personalised guidance from our MFDs, driving some of the industry’s highest SIP and investment persistency rates,” said Vishranth.
Strategic Investor Support From Venture Catalysts
Venture Catalysts, a venture capital and angel investment platform catering to early stage startups, has played an important role in AssetPlus’s growth.
“The handholding proved critical, particularly in early stages,” the founders said. “When we were raising funds in January 2022, Venture Catalysts was among the first investors to believe in our vision, recognising the potential of MFDs to drive mutual fund penetration. Its timely investment, as part of a seed round of 28 Cr, and support gave us the confidence to move forward and scale our platform.”
Apart from funding and mentoring, it provided access to a vast network required for business collaborations and partnerships. “Its leadership team, angel network and portfolio companies helped us learn, gain insights and forge meaningful collaborations that shaped our growth. Its mentorship helped us navigate challenges and capitalise on growth opportunities. Overall, this partnership with Venture Catalysts added significant value to our strategy and execution,” added Vishranth.
Of Challenges, Opportunities And The Road Ahead
Even after years into a roaring bull market, the mutual fund industry is still accelerating, indicating that investors are far from satiated. Consider this: The total number of MF accounts (folios in industry parlance) stood at 22.5 Cr on December 31, 2024. Data from AMFI (Association of Mutual Funds in India) also showed that the industry’s AUM stood at INR 66.93 Lakh Cr on that day, a 76% bump from INR 30 Lakh Cr in November 2020.
Given this humongous growth and the fact that direct plans are primarily used by tech-savvy young investors who are just starting and keen to experiment, the relevance of mutual fund distributors is definitely on the rise when it comes to goal-oriented strategic planning for the long term. However, industry estimates indicate roughly 3 Lakh registered MFDs in India, with about 50% actively engaged. Although mutual fund distribution giants like Prudent and NJWealth hit massive scale, they have achieved it by leveraging offline markets.
This means a massive opportunity for AssetPlus, which offers cost-effective and convenient digital-first solutions to MFDs. Distributors looking for an online foray or keen to embrace a hybrid online-offline model to explore a bigger market and a greater reach are bound to benefit from the platform’s offerings.
Aware of this growth potential, AssetPlus plans to expand its MFD network to 50K in five years and reach more than 10 Lakh customers through its MFD partners. Its commitment to empowering MFDs through training, technology and client-centric tools shows that the startup is well-positioned to capitalise on the evolving wealth management landscape.
“Additionally, we will continue to refine our technology and research tools, create advanced marketing resources and focus more on our training programmes. Our goal is to empower MFDs with comprehensive knowledge and cutting-edge tools to support their business growth and improve the investment outcomes for their customers,” said Vishranth.
In essence, opportunities could hardly be better for the industry, the distributors and wealthtech service providers like AssetPlus. No doubt there will be occasional turbulence in the market. But overall, the sentiment is bullish, and cash flow from investors is not likely to take a hit since their resilience and risk appetite have grown. With MFDs gearing up to enhance their efficiency and effectiveness with help from platforms like AssetPlus, one can expect aggressive growth.
