Stable Finserv’s Mutual Fund Activities Suspended by AMFI

The mutual fund distribution activities of Stable Finserv, part of the fintech company Stable Money, have been suspended by the Association of Mutual Funds in India (AMFI) until November 2026, as reported by the Economic Times. Sources indicate that AMFI has prohibited Stable Finserv from offering any mutual fund products from May 21 to November 20, 2026.

Stable Finserv operates Stable Money, a platform for fixed-income investments that is backed by Peak XV Partners, Lightspeed, Fundamentum, and Z47. This decision has already affected users, as some investors are experiencing transaction failures related to SIP investments. Reports indicate that communication clarified the distributor or agent code connected to these investments has been restricted by either the fund house or regulatory bodies.

Response from Stable Money

In response to inquiries from Startup Superb, Stable Money mentioned that there has been a temporary pause on new investments in Gold and Silver mutual funds, impacting both SIPs and lump-sum contributions, while certain aspects of their mutual fund distribution are under review. The company has stated, “We are engaging with relevant industry and regulatory stakeholders regarding this review. As the process continues, it would not be appropriate to provide further details at this time. We are dedicated to fulfilling our regulatory responsibilities and ensuring transparency for our customers.”

About Stable Money

Established in 2022 by former Navi executives Saurabh Jain and Harish Reddy, Stable Money provides fixed deposits, corporate bonds, and mutual fund investment options via its platform. The wealthtech startup has raised approximately $65 million from significant investors, including Peak XV Partners, Lightspeed, Fundamentum, and Z47. Stable Money was most recently valued at $175 million and is reportedly in negotiations to raise an additional $15 million at a projected valuation of around $275 million.

Industry estimates suggest that Stable Money manages around Rs 300 crore in fixed deposits and Rs 400 crore in corporate bond investments each month. The volume of mutual fund investments forms a smaller segment of their operations, with monthly estimates ranging from Rs 50 to 80 crore.