Zerodha’s Rainmatter invests in Capitalmind

Capitalmind Financial Services Pvt Ltd (CFSPL), a SEBI-registered portfolio manager known for its data-driven investment strategies, has raised its first institutional funding. The Series-A round comes from Rainmatter, the fintech arm of zerodha Broking Ltd.

The funding comes right as Capitalmind launches its mutual fund journey. Its Flexi Cap Fund, which raised ₹45 crore during the NFO, reopens for subscriptions today.

About 75% of the funds came through direct plans — with nearly half of those investments made via Zerodha’s Coin platform, as per a Capitalmind statement.

Read also- Fashion brand Outzidr raises $3.1 million in pre-Series A round led by RTP Global

“This is a financial investment to support them as they build out their asset management company,” said Nithin Kamath, founder and CEO of Zerodha and Rainmatter, according to a statement. “In line with SEBI regulations, our stake is capped at 10%, and we will not have a board seat, ensuring their independence.”

The partnership marks a formal step in the long-standing relationship between Nithin Kamath and Capitalmind Founder Deepak Shenoy, who had advised Zerodha during its early days.

“Nithin’s work in sparking my interest in quantitative trading years ago was a pivotal moment for me,” said Shenoy, who now heads Capitalmind Asset Management. “Having Rainmatter invest in our vision is a powerful validation of our journey from a financial blog to a full-stack asset management firm.”

Advertisment

“The professional fee-only advisory ecosystem hasn’t scaled as hoped, leaving investors to navigate a complex landscape. We aim to bridge that gap through accessible, solution-oriented products, much like the target-date funds discussed in SEBI’s recent consultation paper,” Shenoy added.

The fresh capital will help Capitalmind grow its dual-track strategy—expanding retail access via its mutual fund business, while strengthening its wealth management offering through its PMS (Portfolio Management Services) arm.