The Association for Mutual Funds in India (AMFI) has suspended Stable Money Finserv, a Peak XV Partners-backed wealthtech startup, from distributing mutual fund products from May 21 to November 20, 2026, according to inc42.com. Stable Money has temporarily paused fresh investments in gold and silver mutual funds, including SIPs and lump sum investments, amid a review of certain aspects of its mutual fund distribution operations.
Stable Money, founded in 2022 by Saurabh Jain and Harish Reddy, confirmed it is engaging with relevant industry and regulatory stakeholders regarding the ongoing review but declined to comment further on specifics. The Bengaluru-based startup enables retail investors to invest in fixed-income products such as fixed deposits, bonds, and debt mutual funds. Earlier this year, Stable Money raised $25 million in a pre-Series C round led by Peak XV, bringing its total funding to approximately $65 million from investors including Z47, RTP Global, Lightspeed, Aditya Birla Ventures, and Mars Shot Ventures.
The suspension comes amid growing scrutiny in the mutual fund distribution sector, where startups like Groww, Zerodha Coin, and Upstox compete. Stable Money’s temporary halt on mutual fund distribution could impact its market positioning in the competitive wealthtech space. The move highlights regulatory oversight in the mutual fund industry, emphasizing compliance and operational standards for startups expanding their product offerings in fixed-income and low-risk investment instruments.
Stable Money’s suspension by AMFI will last six months, ending on November 20, 2026, during which the startup must address the regulatory review. The company’s next steps will be closely watched by investors and industry participants, especially following its recent $25 million funding round announced in February.