Synopsis
Kamath said that Zerodha has invested 10% of what it earns in startups and another 10% in social development through Rainmatter, and added that it is not in the business of quick exits.“Rainmatter started in 2016, with a few of us doubling up on our day jobs and trying to help startups that were trying to expand India’s capital markets ecosystem. Nine years later, it has grown into something far bigger than we ever imagined. So far, we’ve invested over ₹1,500 crore across 160+ startups spanning fintech, climate, health, media, and deep tech,” Kamath wrote in a post on X.
Kamath said the VC firm is now focussed on backing startups that help India own more of what it consumes. As a result, it’s moved beyond investing in startups that cater to capital markets.
“We’re not a typical VC. We don’t take board seats, and we’re not in this for quick exits. We’re not interested in forcing founders into short-term decisions just so we can make money in five or six years… our approach has been simple: be patient, back founders for the long term, and help them build the business the right way,” he added.
Additionally, Kamath said Zerodha has invested 10% of what it earns in startups and another 10% in social development through Rainmatter.
Per the company’s website, Rainmatter’s portfolio of startups spans diverse sectors, with the maximum firms in climate tech (44), followed by health and fitness (41 startups), fintech at 37, other sectors (15), and media at 8. Some of its portfolio companies include Jupiter, smallcase, PeeSafe, Praan Health, Sisters in Sweat, Super You, The Whole Truth, Upliance.AI, Finshots, The Ken, and The Arc.
Given that Kamath says Rainmatter has invested in 160+ startups till date but the company’s website lists only 145 firms in its current portfolio, this suggests it may have exited about 15 companies.
Kamath co-founded the company with Zerodha’s chief technology officer (CTO) Kailash Nadh. In August 2023, Kamath said the company had invested Rs 400 crore across 80 startups, suggesting that over the past three years its portfolio size had nearly doubled while total investments had grown a little less than four times.
