Zerodha-owned investment arm Rainmatter Capital has allocated a fresh capital of Rs 1,000 crore in a unique structure that has no exit mandates to investors in order to benefit founders.
The investment will focus on sectors like health, education, and climate change.
"We are now increasing our commitment by increasing the allocation by an additional Rs 1,000 crore in a perennial structure or with the ability to stay invested forever," Zerodha's cofounder Nithin Kamath wrote on Twitter on August 10.
Set up in 2016, Rainmatter has partnered with over 80 startups and has invested close to Rs 400 crore, read a blog post by 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," he added.
Typically venture capital investors look at exiting investments within seven to eight years through secondary sale or Initial Public Offering (IPO). However, Rainmatter's permanent capital structure allows VCs to stay invested in a startup for longer.
"Investors who bring in long-term patient capital—investors who are willing to stick around and help in any way possible, where the goal is to build a good, sustainable, long-term business, and not just to generate rapid returns," the blog said.
Rainmatter has so far invested in fintech startups like Smallcase, Ditto and Sensibull and other startups in the health and wellness space like Devil Circuit, The Whole Truth and Peesafe.
It has also invested in climate change and media startups including Akshayakalpa, Learnapp, Finshots and The Ken.
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