Zerodha allocates Rs 1,000 Cr to its startup investment platform Rainmatter

Bootstrapped stock broking firm Zerodha has allocated Rs 1,000 crore more to its startup investment platform, Rainmatter.

“Patient capital with no exit mandates that founders can benefit from when building an enterprise, in India specifically, where unlike in developed countries, it can take much longer to become resilient and sustainable,” said Nithin Kamath, co-founder and CEO of Zerodha, in a blog post.

Rainmatter claims to have partnered with over 80 startups and has invested close to Rs 400 crore over the last 7 years. The firm especially focuses on startups in the fintech space. However, it has now extended to those helping people make healthier choices, getting educated, and those who are working on the much harder problems of climate change and creating livelihoods.

Notable startups like CRED, Fi, Indiagold, FinShot, Jupiter, Smallcase, Wintwealth, Ultrahuman, Stoa and Agnikul have raised money from Rainmatter in their initial days.

According to Kamath, the goal of the investments is not just to generate financial returns for the company, the profits from the investments go back to supporting more entrepreneurs and the Rainmatter foundation.

Zerodha is one of the highest profit generating companies in the Indian startup ecosystem. The firm registered Rs 4,964 crore in revenue in FY22 with Rs 2,094 crore profit. The financial numbers for FY23 are yet to come.  The firm also announced ESOP buyback worth Rs 265 crore collectively during the fiscal year FY22 and FY21.