According to Nithin Kamath, they believe Zerodha expanded as much as it did because they were allowed to construct what they believed was correct without being pressured to grow rapidly.
Nithin Kamath, CEO of Zerodha, stated on Wednesday that the company has expanded its investment in its startup accelerator fund, Rainmatter. According to Kamath, the allotment has been enhanced by Rs 1,000 crore. He noted that the fund has invested about Rs 400 crore in the last seven years.
According to Kamath, as Zerodha grew, they discovered that one challenge to answer was to assist develop capital markets as well as boost access. He stated that a complete ecosystem was required to attain the aim. Rainmatter Fintech arose from the desire to assist startups.
As Zerodha increased, so did their allocation to Rainmatter. “Over the last seven years, we have partnered with over 80 startups and invested close to Rs 400 crores.” While we began by supporting digital entrepreneurs who helped people manage their money better, our support has now expanded to those who assist people make healthier choices, become educated, and those who are focusing on the far more difficult challenges of climate change and generating jobs,” added Kamath.
“We are now increasing our commitment by increasing the allocation by an additional Rs 1,000 crore in a perennial structure or with the ability to stay invested forever,” he said, explaining that founders can benefit from patient capital with no exit mandates, particularly when it takes longer for a startup in India to become resilient and sustainable.
Using Zerodha as an example, Kamath outlined the reasoning for the perpetual structure. He stated that they believe Zerodha expanded as much as it did because they were allowed to construct what they believed was correct without being pressured to grow rapidly. “We believe that founders can benefit similarly from long-term patient capital—investors who are willing to stick around and help in any way possible, with the goal of building a good, sustainable, long-term business rather than just generating rapid returns.” “Because the investments we make are with our own money, we can stay invested indefinitely,” he remarked.
According to Nithin Kamath, the financial returns will be used to promote new businesses as well as the Rainmatter foundation. He stated that they shun board seats and instead assist as mentors and through collaborations.
Rainmatter by Zerodha invests in businesses in finance, health and wellness, storytelling and education, and climate change, environment, and livelihoods.
