Zerodha's Nithin Kamath to pump in Rs 1,000 crore to fund startups

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.

We started @Rainmatterin in 2016 to support fintech startups working on helping people do better with their money. So far, we have invested ~ Rs 400 crores in 80 startups. In this journey, we realized that having patient Indian investors backing Indian founders is helpful. We're…

— Nithin Kamath (@Nithin0dha) August 10, 2023

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.

Also Read: Startup funding winter: Indian startups begin reducing burn rate with 70% funding drop

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.