India's broking industry is experiencing another cycle of disruption as younger investors and traders embrace new platforms, creating opportunities for emerging brokers to build substantial businesses. According to Anish Patil, an investor at venture capital firm Z47, formerly Matrix Partners India, broking is one of the few categories where winners change every five years. The shift is being driven by two forces working in tandem: technological evolution and generational change, as each new generation of investors tends to enter the market through newer platforms while technological improvements enable emerging brokers to operate with leaner cost structures and better economics. As Anish explained in an interview with Mint on the sidelines of the Global Fintech Fest, "Broking is one of the few categories where every five years, if you go and see the winners, they change."
The underlying market is experiencing significant expansion, with India's securities brokerage market valued at ₹6.98 billion in 2026 projected to grow at a compound annual growth rate (CAGR) of 13.33% to reach ₹13.09 billion by 2031, according to a Mordor Intelligence report published in July. Anish does not expect newer brokers to simply displace established players, noting that India's expanding investor base is large enough to accommodate several businesses, including those built around specific customer segments. He emphasized that there is enough space for 10 brokers to coexist as retail participation in equity capital markets continues to deepen. While some newer brokers are building products for active traders, others are zeroing in on younger investors, with Anish noting that "a broker does not necessarily need tens of millions of users to build a sizeable business; a smaller but highly engaged customer base can also support a viable model."
The opportunity is unfolding against a broader deepening of India's wealth market, with Z47 seeing a new wave of wealth-tech startups emerge as more Indians accumulate wealth. In 2025, Vikram Vaidyanathan, managing director at Z47, told Mint that the firm was seeing a new wave of wealth-tech startups emerge as the country's population becomes more affluent. In July 2025, the Bengaluru-based firm, which split from its US parent Matrix in 2024, was in early talks to raise its first fund to continue investing in Indian startups. The firm has backed companies across wealth-tech and fintech, including OneCard, Captain Fresh, Country Delight, Jupiter, MoEngage, and Zupee, among others, while exiting investments in companies such as Avail, CreditVidya, Five Star Business Finance, ITZ Cash, Muthoot Finance, and Ola Electric through a mix of strategic sales and public listings.
Anish sees artificial intelligence as another potential catalyst for the sector, particularly in wealth management where AI could automate parts of work traditionally handled by relationship managers, from preparing reports to managing customer interactions. This could allow managers to serve a larger pool of customers while delivering greater personalization. However, the funding environment is becoming more selective, with larger growth rounds facing greater scrutiny from investors. For companies seeking ₹40-50 million or more, investors will increasingly look for strong unit economics, a differentiated business model and a clear path to an exit, according to Anish. Beyond wealth and broking, Z47 is also seeing opportunities in AI-led financial services and expects lending to see consolidation as stronger companies acquire weaker or complementary businesses, with Anish noting that "lending might see some consolidation in the near-term, with stronger guys acquiring niche balance sheets or complementary asset-skills."
The firm is currently deploying capital from its fourth fund, which closed at $550 million in 2023, with entry cheque sizes ranging between $3 million and $5 million. While capital is likely to continue flowing into early-stage and early-growth wealth and fintech companies, larger growth rounds are likely to face greater scrutiny from investors. Beyond wealth and broking, Z47 is also seeing opportunities in AI-led financial services, including technology for banks and other financial institutions, as the firm continues to explore AI-led financial services and expects lending to see consolidation in the near-term.
