On 9 August, Zerodha increased its allocation to its startup accelerator fund, Rainmatter. The announcement of additional investment was made by the CEO of Zerodha Nithin Kamath.
He said that Zerodha raised the allocation by an additional Rs 1,000 crore. He added that the fund had invested nearly Rs 400 crore over the last seven years.
CEO Kamath said that when Zerodha was steadily growing, they observed that one issue to solve was to help expand capital markets, along with increasing access. He said that with a view to achieving the ultimate goal, an entire ecosystem had to exist. Then, the Rainmatter Fintech was made out of that idea to support startups.
With the expansion of Zerodha, their allocation to Rainmatter grew as well. According to Kamanth, Zerodha has now partnered with over 80 startups and has invested close to Rs 400 crores over the last 7 years. He said, “While we started out by backing tech entrepreneurs who were helping people do better with their money, it has now extended to those helping people make healthier choices, getting educated, and those who are working on the much harder problems of climate change and creating livelihoods.”
“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 stated adding that patient capital with no exit regulations that founders can gain an advantage especially when it takes a long time for a startup in India to become strong, steady and sustainable.