Nithin Kamath’s investment arm Rainmatter has steadily evolved into a powerful capital platform over the past nine years, actively backing startups across multiple sectors while maintaining a disciplined long-term investment philosophy.
Founded in 2016, Rainmatter initially focused on supporting startups that aimed to expand India’s capital markets ecosystem. However, over time, the platform significantly broadened its scope. Today, it has deployed more than Rs 1,500 crore across 160+ startups spanning fintech, climate tech, health tech, media, and deep tech—making it one of India’s most distinctive alternative investment models.
“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,” Kamath said.
Importantly, Rainmatter’s investment strategy remains deeply linked to the financial performance of Zerodha. Kamath revealed that the company allocates 10% of its profits toward startup investments through Rainmatter. Additionally, another 10% goes toward social initiatives via the Rainmatter Foundation. As a result, this dual allocation model reflects a broader and more evolved investment thesis.
Over the years, the firm has shifted from a narrow capital markets focus to a more comprehensive ecosystem-building approach. “The thesis has evolved from just expanding the capital markets, but the thread running through it is simple. As a country, we need to own more of what we consume. Sovereignty, in the truest sense,” he noted.
At the same time, Rainmatter continues to stand apart from traditional venture capital firms. Unlike most VCs, it does not typically take board seats and deliberately avoids pushing founders toward short-term exits or aggressive scaling strategies. Instead, it prioritizes sustainable growth and long-term value creation.
“We’re not a typical VC. We don’t take board seats, and we’re not in this for quick exits,” he said. “We’re not interested in forcing founders into short-term decisions just so we can make money in five or six years.”
Furthermore, Kamath emphasized that the pressure to simultaneously achieve rapid growth and profitability often weakens the foundation of businesses. According to him, building a genuinely useful, scalable, and profitable company is inherently challenging—and rushing the process only compounds the difficulty.
“The simple reality is that 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,” he said.
He also pointed out that such pressure often leads founders to take shortcuts, which ultimately impact product quality and customer outcomes.
“That kind of pressure usually leads to shortcuts. And shortcuts, more often than not, come at the consumer’s expense,” he added.
Consequently, Rainmatter has consistently adopted a patient capital approach, aligning closely with founders who prioritize long-term business fundamentals over short-term gains.
“So our approach has been simple: be patient, back founders for the long term, and help them build the business the right way,” he said.
As India’s startup ecosystem matures, Rainmatter’s model highlights a growing shift toward sustainable investing, patient capital, and ecosystem development. By balancing financial returns with long-term value creation, the platform is redefining how capital can support innovation while strengthening India’s economic sovereignty.
