Zerodha’s Rainmatter has invested Rs 1,500 crore in over 160 startups, says Nithin Kamath

Nithin Kamath, founder and CEO of Zerodha, announced on April 10 that Rainmatter, the company's investment arm, has allocated over ₹1,500 crore to more than 160 startups since its establishment in 2016. In a reflective post on X, Kamath shared insights into Rainmatter's evolution from a side project to a significant player in the startup ecosystem. Originally initiated to enhance India's capital markets, Rainmatter has broadened its investment scope beyond fintech to encompass sectors like climate, health, media, and deep tech. Kamath noted, "Nine years later, it has grown into something far bigger than we ever imagined." Within the fintech sector, Rainmatter has supported around 37 companies, including notable names like CRED, Jupiter, and M2P Fintech. The health and fitness segment features an impressive portfolio of approximately 41 startups, such as Boldcare and Fittr. Additionally, Rainmatter is making strides in emerging fields, with investments in spacetech companies like Agnikul Cosmos and GalaxEye. Kamath explained that the investment philosophy has shifted over the years from a focus solely on capital markets to a broader vision of economic self-reliance. "As a country, we need to own more of what we consume," he stated, emphasizing the importance of sovereignty. The organization has committed 10% of Zerodha's earnings to startup investments and another 10% to social initiatives through the Rainmatter Foundation. Kamath distinguished Rainmatter from conventional venture capital firms by highlighting its patient investment strategy. "We’re not a typical VC. We don’t take board seats, and we’re not in this for quick exits," he asserted, indicating that the firm prioritizes long-term growth over short-term profits. This approach, according to Kamath, allows founders to avoid the pressure of aggressive timelines, which can often lead to detrimental outcomes. He cautioned that the pressure to achieve rapid success can compromise the quality of startups, stating, "Building a good business is hard. Building one that is genuinely useful, scalable, and profitable is even harder when investors are pushing you to speedrun success and sustainability."