In a bold departure from traditional venture capital norms, Rainmatter Capital, the investment arm of Zerodha, has announced a new ₹1,000 crore fund under an Alternative Investment Fund (AIF) structure, with a unique promise: no pressure on founders and no rush to exit. The fund will be deployed over the next 2–3 years, primarily targeting startups in fintech, climate, and health—sectors closely aligned with Zerodha’s ethos and the personal passions of its founders, Nithin and Nikhil Kamath.
🧭 A New Model of Patient Capital
Led by Dinesh Pai, Rainmatter’s investment philosophy emphasizes long-term support, founder freedom, and ecosystem growth over aggressive returns. Unlike conventional funds, Rainmatter operates with a 15-year investment horizon, offering what Pai calls “patient capital” that allows entrepreneurs to build sustainably without the burden of performance targets or exit timelines.
“We’re not chasing unicorns or exits. We’re here to back people who are solving real problems,” Pai told Moneycontrol.
🌱 From Fintech to Climate and Health
Initially focused on fintech, Rainmatter has expanded its scope to include climate action and public health. In 2020, it launched the Rainmatter Foundation, a Section 8 non-profit that provides climate grants. While the foundation handles philanthropic efforts, equity investments in climate startups are made separately to encourage entrepreneurial solutions to environmental challenges.
🤝 Founder-First Approach
Rainmatter’s model is built on trust, flexibility, and minimal interference. The team avoids micromanagement and instead offers capital, distribution support, and mentorship. Investments are made through a mix of Rainmatter Capital, the Foundation, and personal cheques from the Kamath brothers.
“We like to keep things simple. It’s about building relationships, not portfolios,” Pai added.
📊 Track Record and Future Outlook
Since its inception in 2016, Rainmatter has backed over 80 startups, with zero exits to date—a testament to its long-term commitment. As the funding landscape tightens, Rainmatter’s approach offers a refreshing alternative for mission-driven founders seeking impact over valuation.
Stay tuned for more updates on India’s evolving startup investment landscape.
