Zerodha has partnered with retirement-focused fintech startup Pension Box to expand the reach of National Pension System (NPS) products and create new offerings. The goal is to meet the rising interest in retirement savings among salaried employees.
Zerodha has invested $2 million in the Bengaluru-based company to help it grow, and strengthen its sales and marketing efforts.
Earlier in 2021, Pension Box had raised $260,000 in a pre-seed funding round from 100x.VC to build and develop its product.
The partnership will bring together Pension Box’s corporate NPS technology and Zerodha’s wide customer reach and brand. The companies plan to co-develop products, focusing on employer-led NPS adoption, where payroll integration and automated employee contributions will drive growth.
“While the employee provident fund (EPF) is mandatory for around 7 lakh companies, only about 22,000 do NPS, indicating significant growth potential. The digital NPS platform can integrate with corporate payroll software, making the process seamless,” said, Kuldeep Parashar, cofounder, Pensionbox.
At present, only about 22,000 private companies are registered with the National Pension System (NPS). Although this number is growing, it is still far lower than the nearly 700,000 companies that offer provident fund benefits to their employees, Parashar said.
PensionBox was founded in 2021 by brothers Kuldeep Parashar and Shivam Parashar. The company focuses on making pension onboarding and management digital for both employers and individuals, with special attention to helping companies adopt the corporate NPS.
It has built digital systems that connect NPS contributions with HR and payroll software, making it easier for companies to manage employee onboarding and pension administration.
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