Axis MF and UTI AMC partner with ONDC, driving mutual fund access in smaller cities.
Axis Mutual Fund and UTI Asset Management Company have strategically partnered with the Open Network for Digital Commerce (ONDC), joining forces with fintech leaders such as Cybrilla to significantly boost mutual fund penetration in smaller towns and rural India. This collaboration marks a pivotal move to democratize retail investing across the country, bridging the investment gap between urban and underserved regions.
According to an official statement from UTI Mutual Fund, the company has fully integrated its offerings with ONDC in partnership with fintech provider Cybrilla, enabling digital access to its mutual fund products. This integration aligns with UTI AMC’s core objective of expanding financial inclusion and widening the reach of mutual funds in India’s rapidly digitizing economy. With over 300 million internet users in semi-urban and rural areas and growing smartphone penetration, this initiative leverages India’s expanding digital public infrastructure to close the urban-rural divide in investment access. UTI’s collaboration with Cybrilla and Appreciate Wealth enhances seamless digital onboarding and simplified investment processes, making financial tools accessible to first-time and small investors alike.
ONDC, an innovative government-backed initiative led by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to transform digital commerce in India by creating an open, interoperable network that enables platform-agnostic access to products and services. This open architecture significantly lowers entry barriers, reduces costs, and enhances transparency, which is crucial for expanding financial products like mutual funds into traditionally underserved markets.
Following UTI’s lead, Axis Mutual Fund recently announced its ONDC partnership, emphasizing its commitment to making mutual funds affordable and widely accessible. Together, these AMC-ONDC alliances are expected to revolutionize how millions of Indians invest, particularly in Tier 2 and Tier 3 cities where formal financial product penetration remains below 20%, compared to over 60% in metropolitan areas.
UTI AMC’s spokesperson highlighted, “Through ONDC, we aim to make mutual fund investments accessible to individuals across India, especially where access to formal financial tools has been limited.” Vinay Lakhotia, UTI’s CFO, reinforced this by stating, “This integration reflects our ongoing commitment to financial inclusion. It empowers first-time investors and provides equal opportunity for participation in India’s growth story, positioning UTI AMC as a trusted wealth creation partner.”
Axis AMC’s Managing Director and CEO, B. Gopkumar, called the ONDC collaboration a “game-changer” for financial inclusion, stressing that “By leveraging the ONDC Network, we are breaking barriers and making mutual fund investments accessible to millions, including underserved and remote populations.” He further emphasized the goal to “democratize wealth creation and empower every individual to control their financial future.” Axis AMC plans to continuously deploy cutting-edge digital tools to deepen investor engagement and support sustainable long-term wealth growth.
Key Benefits for Investors
The partnership with ONDC brings several key benefits for investors.
Mutual fund products will become accessible across India’s diverse geographies, including many underserved and remote regions, helping bridge the urban-rural investment divide.
By leveraging ONDC’s open digital network, platform exclusivity is eliminated, creating a more competitive and inclusive marketplace for investors.
As a government-regulated initiative, ONDC enhances security and transparency, which boosts investor confidence significantly.
Additionally, ONDC’s interoperability reduces infrastructure costs, allowing mutual fund investments to become more affordable and accessible for retail investors across the country.
Hrushikesh Mehta, SVP-Financial Services at ONDC, remarked, “ONDC is redefining financial product distribution by breaking traditional barriers and promoting broader accessibility. With Axis Mutual Fund joining, we are enabling a more inclusive investment landscape where digital infrastructure empowers individuals across India to take charge of their financial growth.” He further called this partnership a significant milestone toward truly democratic wealth creation in the country.
In conclusion, the Axis MF and UTI AMC partnerships with ONDC, backed by fintech innovators like Cybrilla, represent a watershed moment for India’s mutual fund industry. By harnessing India’s burgeoning digital ecosystem and government-led initiatives, these collaborations promise to widen investor participation, bridge the urban-rural divide, and catalyze inclusive financial growth on an unprecedented scale.
