Listed corporate bonds, once largely the preserve of institutional investors, are attracting increasing retail participation as licensed online bond platform providers (OBPPs) step up advertising and investor education efforts around the asset class.
Industry data show retail investors are now investing around Rs 1,500-2,000 crore a month in corporate bonds, five to six times the roughly Rs 300 crore invested a year ago. Overall, an estimated 300,000-400,000 investors have participated in the segment, with more than 100,000 considered active investors.
"One of the major reasons driving growth in this industry is regulatory clarity on advertising codes, which means platforms have been investing in increasing awareness around corporate bonds among retail investors," said Ajinkya Kulkarni, cofounder of Bengaluru-based bond distribution platform Wint Wealth.
Another factor is the improving quality and diversity of issuers in the listed bond market. Regulatory requirements that bond platforms distribute only listed corporate bonds have also improved transparency, allowing investors to access detailed information about issuers before investing.
"Initially BBB or A rated corporations would rarely come to the bond market, but that has changed. These companies have started listing their bonds more regularly, thereby improving supply," said Nikhil Aggarwal, cofounder of OBPP platform Grip Invest.
Citing Crisil data, he said the number of unique issuers rose to 382 in 2025 from 160 in 2021.
According to NSE data, around Rs 6,600 crore is invested in the listed corporate bond market daily, with institutional investors accounting for most of it. The NSE does not publicly disclose the split between institutional and retail investors.
In February, Sebi chairman Tuhin Kanta Pandey said awareness of corporate bonds was around 10%, compared with 15% for cryptocurrencies. He noted that a deeper corporate bond market could reduce borrowing costs for companies while offering retail investors greater portfolio diversification.
Bengaluru-based Bondscanner is among the latest entrants into the OBPP segment. Nishchay Nath, founder of Bondscanner, told ET that the company is targeting Rs 120 crore in issuances on its platform by July as investor interest in the market rises.
"We are expecting to close June with around Rs 80 crore in corporate bond processing," Nath said.
The opportunity has also attracted larger fintech players. Groww has secured its own OBPP licence and started distributing corporate bond products. Gurugram-based fintech firm Oxyzo Financial Services, backed by OfBusiness, recently completed the acquisition of Rainmatter-backed OBPP platform GoldenPi. The MSME lender is looking to play a larger role in listed corporate bond issuances.
Kulkarni of Wint Wealth said bonds represent the next major growth opportunity after equities.
"If there are 6 crore equity mutual fund investors, bonds are a very good asset class for them as their next bet," he said.
Grip Invest’s Aggarwal said with equity markets remaining relatively subdued in recent months, investor interest in the more stable corporate bond market has increased and is likely to drive further participation.
