Rainmatter, the investment division of Zerodha, has set aside a total of INR 1,000 crore for investments in fields including education, health, and climate change.
Nithin Kamath, co-founder, and CEO of Zerodha, stated that the new funds would be placed in a special “perennial structure” without any exit requirements for the investor, as reported by Inc42.com.
“We are now increasing our commitment by increasing the allocation by an additional INR 1,000 Cr in a perennial structure or with the ability to stay invested forever. 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 Kamath in a blogpost.
In his explanation of the need for “patient capital” for Indian entrepreneurs, Kamath noted that businesses can profit from investors who are “willing to stick around” as opposed to those seeking “rapid returns.” Additionally, he asserted that the local startup ecosystem would benefit from investors who provide long-term patient money to create “good, sustainable, long-term businesses.”
“Good businesses cannot be built overnight, something we learned in our journey. So we are perennial investors and stick with the founders for as long as it takes the founders to build a sustainable business,” added Kamath.
Fintech, health, and narrative founders are supported by Rainmatter. In order to free up your time to produce quality solutions, Rainmatter offers assistance with finance, mentoring, finance APIs, industrial networks, and possibilities to verify your idea. Rainmatter only makes investments of up to Rs. 50 crore and doesn’t hold office or engage in active business participation.