Zerodha owner Nithin Kamath has promised Rs 1,000 crore fund for startups. Zerodha's investment arm Rainmatter Capital has allocated this fresh capital in a unique structure that has no exit mandates to investors in order to benefit founders. The investment will focus on sectors like health, education, and climate change.
Nithin Kamath took to twitter and announced that Rainmatter would allocate Rs 1,000 crore to back entrepreneurs building for India. He also mentioned that they would stay as a perennial investor and would stick with the company as long as it takes the founders to build a sustainable business.
So far Zerodha has invested Rs 400 crores in 80 startups including Smallcase, Ditto and Sensibull and other startups in the health and wellness space like Devil Circuit, The Whole Truth and Peesafe.
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Normally, Venture capital investors prefer to exit the investment in seven to eight years through secondary sale or Initial Public Offering. However, Rainmatter's permanent capital structure allows VCs to stay invested in a startup for longer. In the tweet, Kamath also said that having patient Indian investors backing Indian founders is helpful.