How Pune-based Deciml helps Gen Z use their spare change for mutual fund investments

India is home to about 67 million young adults—a generation fluent in technology and digital transactions. Ask any 22-year-old if they should invest, and the answer is an obvious yes.

Yet, this demographic is unprepared when it comes to financial discipline. According to a December 2024 report by Motilal Oswal, an Indian financial services company, only 3% of Indians invest in mutual funds and SIPs, despite increasing awareness around these investment instruments. 

Now, imagine the potential impact if India’s largest demographic—the youth—had a platform that made investing more accessible and engaging for them. Satyajeet Kunjeer found an opportunity to get Gen Z and millennials to start investing.

“The hesitation among young Indians isn’t due to a lack of intent but rather the misconception that investing requires substantial money, time, research, and effort. This misleading narrative often prevents them from taking action,” Kunjeer, Founder of Deciml, tells YourStory.

Pune-based fintech startup Deciml, founded in 2020, helps users start their investment journey early on through micro-investments in mutual funds. 

Simplifying the investment process

How do you get a young Gen Z, who spends the majority of their time on digital devices, to start investing? Deciml has a simple solution.

Once users download and register on the Deciml app, it integrates directly with their UPI, allowing them to use any digital payment method without additional vendor integration. Now, every time a user makes a digital transaction—whether through UPI apps, debit or credit cards—Deciml rounds the amount to the nearest ten and invests the spare change in mutual funds. 

Here’s an example to understand it better. Let’s say a cup of hot coffee costs Rs 45. Upon making the payment for this coffee, the Deciml app rounds up the payment to Rs 50 and invests the spare change of Rs 5 without requiring user intervention.

Available on iOS and Android, Deciml has garnered 3.5 lakh users since its inception—mostly adults in the age group between 23-27-year-olds from metros and Tier I cities.

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The Pune-headquartered startup offers three investment options. First is the round-up investing, where the app reads the user’s SMS notifications from banks post-transaction and automatically invests the rounded-up amount. Second, daily investment, where users can set a fixed amount to be invested daily from their bank account, and lastly, one-time investment, where users can manually invest any amount at their convenience.

With no lock-in period, users can withdraw their funds in 48-72 hour timelines. "Deciml shifts the investment narrative from distant goals like retirement to immediate aspirations—whether it's a pair of sneakers, a bike down payment, or a weekend trip—making investing effortless and relatable for young professionals," Kunjeer says

The founder claims that Deciml users, on average, save and invest Rs 1,860 per month—nearly Rs 20,000 annually. “This is a game-changer. How many young professionals in India have Rs 20,000 in investments by the age of 23? For many, this marks their first real step toward financial independence.”

What to invest in? 

Even though investments are part of our common parlance, they can intimidate any first-time investor trying to understand and invest in complex financial products.

Instead of offering an overwhelming array of mutual funds, Deciml streamlines this experience by categorising the investment options into three simple risk buckets: Low-risk (liquid and debt funds), Medium-risk (hybrid equity funds) and High-risk (equity funds).

For this, it has partnered with Navi Mutual Fund, the Binny Bansal-owned asset management company, which focuses on low-ticket-size investments. At present, Deciml offers two Navi mutual fund schemes. 

Navi Equity Hybrid Fund is a balanced fund that combines equity and debt investments, aiming to provide moderate returns with reduced volatility, and Navi Large and Mid Cap Equity Fund, which focuses on investing in large and mid-cap companies, targeting higher growth potential.

During onboarding, Deciml asks users to select their risk appetite, based on which the app provides appropriate mutual fund options. Users can choose the funds they want to invest in and also have the option to change later.   

One of the users, Raunak Thakur, says, “I've been using Deciml for a few months now, and I'm really impressed with how easy it is to use… It's a great way to save money without even thinking about it, and it gives me a lot of flexibility to choose the right investments for me.”

A business focused on the younger demographic, the company understands the need to engage Gen Z and millennials in financial education. Through its Wise Up blog, the company creates relatable, bite-sized content to explain concepts, including investing, micro-investing, and mutual funds, in a fun and digestible manner. 

Market opportunities and way ahead

With an increase in internet penetration, India’s digital investment market is estimated to grow to $14.3 billion by 2025, highlights a report by Benori Knowledge.

Competing with Bengaluru-based saving and investment app Jar, which invests spare change in gold, Deciml stands out by focusing solely on mutual fund investments. 

To date, the startup has seen about Rs 77 crore invested through its app, the founder claims the app sees Rs 8 lakh daily investments.

Currently, Deciml earns a 1.3% trail commission from its AMC partner, Navi Mutual Fund, for all investments done through its app. In the mutual fund industry, a trail commission is a recurring fee paid to distributors for ongoing assistance and services to investors, typically a percentage of the assets under management, paid periodically.

In FY25, the startup generated a revenue of Rs 9.72 lakh, up from Rs 8.24 lakh in FY24. 

In 2022, Deciml raised a pre-seed round of just under $1 million, followed by a $3 million seed round earlier in March, to expand its user base, enhance product features, and strengthen its leadership team. The company, with a team of 14, wants to refine its marketing strategy to reach more young professionals and help them start their investment journey.

The company is backed by Gaurav Munjal (Co-founder of Unacademy), Ritesh Malik (Founder of Innov8), Mukund Jha (CTO of Dunzo), and Raunak Munot (Co-founder of Bombay Shaving Company), as well as social media influencers like Ranveer Allahbadia, Bhuvan Bam, Zakir Khan, Raj Shamani, Suhani Shah, and Varun Thakur.

Deciml aims to make investing the second nature of individuals, Kunjeer says. “By automating investments and making them effortless, Deciml is helping young Indians form a habit that will serve them for life. By the time these users reach their late 20s or early 30s—when most people traditionally start thinking about financial planning—they will already have years of investing experience behind them,” he adds.