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AMFI Suspends Peak XV-Backed Stable Money’s Mutual Fund Distribution Business

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AMFI Suspends Peak XV-Backed Stable Money’s Mutual Fund Distribution Business

Peak XV Partners-backed wealthtech startup Stable Money has reportedly been barred by the Association for Mutual Funds in India (AMFI) from distributing mutual fund products.

Citing sources, ET reported that the mutual fund industry body has suspended Stable Money Finserv from issuing any mutual funds from May 21-November 20, 2026.

Without confirming AMFI’s involvement, Stable Money said it has temporarily paused fresh investments in gold and silver mutual funds, including SIPs and lump sum investments. Additionally, certain aspects of Stable Money’s mutual fund distribution operations are under review, the startup said.

“We are engaging with the relevant industry and regulatory stakeholders in relation to this review. As the process is ongoing, it would not be appropriate for us to comment further on the specifics at this stage,” the statement added. 

Founded in 2022 by Saurabh Jain and Harish Reddy, Stable Money enables retail investors to invest in fixed-income products such as fixed deposits, bonds and debt mutual funds, along with other low-risk instruments. The Bengaluru-based startup competes with the likes of Groww, Zerodha Coin, Upstox, among others. 

Earlier this year, the startup raised $25 Mn in its pre-Series C funding round led by Peak XV. Overall, it has raised a total funding of around $65 Mn to date from investors like Z47, RTP Global, Lightspeed, Aditya Birla Ventures, Mars Shot Ventures, among others. 

Announcing its latest fundraise in February this year, Stable Money claimed to have a user base of over 50 Lakh investors and said it had facilitated more than ₹5,000 Cr in investments.  

This comes at a time when the wealthtech segment, including mutual funds, is seeing rapid adoption due to rising financial awareness and easier access to various financial products. As a result, several startups in the wealthtech space are strengthening their mutual fund portfolio.

Earlier this week, Scripbox acquired the mutual fund distribution business of wealth management firm Bluechip Capital to expand its footprint in Delhi NCR. Similarly, AssetPlus raised ₹175 Cr to enhance the tech infrastructure of its mutual fund distribution platform. 

The post AMFI Suspends Peak XV-Backed Stable Money’s Mutual Fund Distribution Business appeared first on Inc42 Media.



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