Zerodha's Rainmatter picks up nearly 5% stake in fund house Capitalmind
The investment aligns with the reopening of the Capitalmind Flexi Cap Fund for subscriptions. About 75% of the initial corpus came via direct plans, half of which were channelled through Zerodha’s Coin platform.
Capitalmind Financial Services has secured its first institutional investment, with Rainmatter, the fintech fund backed by Zerodha Broking Ltd., taking approximately a 5% stake.
The deal follows the launch of Capitalmind’s mutual fund business, which recently raised Rs 45 crore in its debut offering.
The investment aligns with the reopening of the Capitalmind Flexi Cap Fund for subscriptions. About 75% of the initial corpus came via direct plans, half of which were channelled through Zerodha’s Coin platform.
“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 formalises a longstanding relationship between Kamath and Capitalmind Founder Deepak Shenoy, who advised Zerodha in its early years. “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.”
The capital infusion will be used to expand Capitalmind’s dual-track strategy: broad retail reach through its mutual fund vertical, and a focused wealth-management offering through its PMS arm.
“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 latter already manages Rs 450 crore in mutual fund baskets for high-net-worth clients, while the former targets the mass affluent with simpler, rule-based products.
(The article was updated to correct a factual error)
Edited by Affirunisa Kankudti