Rainmatter, a venture capital fund and incubator set up by Indian entrepreneur Nikhil Kamath, is looking to attract investors from the Gulf region by launching a new fund.
The fund also has plans to invest in the Middle East region, which will be its first move outside India.
“So far, Rainmatter primarily allocated proprietary capital. We have been considering starting an Alternate Investment Fund that will be open to investors in the Gulf,” Nikhil Kamath, co-founder and chief investment officer of Zerodha and True Beacon, told Arabian Business.
“The (proposed) fund will be hyper focused on fintech, which we believe will be an enormous opportunity in India over the next decade,” Kamath revealed.
Kamath, a school dropout-turned billionaire entrepreneur, however, did not elaborate either on the size or the timeline for launching the fund.
On his plans to diversify investments outside India, he said: “We are open to investing in the Gulf and are always on the lookout for good opportunities.
“The Gulf is a natural collaboration for most things in India, based on the deep ties we share historically and the large Indian diaspora living in the Gulf. We are seeking to increase engagement to shore up cross border trade,” he added.
Significantly, Kamath’s plans to tap the Gulf investors comes on the back of his success with ultra rich non-resident Indians (NRI) from the region investing in large numbers in the fund of True Beacon, set up by Nikhil along with his brother Nithin Kamath.
Kamath earlier told Arabian Business that investments from the Gulf region in the True Beacon investment fund have been clocking a 20 percent month-on-month growth in the recent months.
Nikhil Kamath, co-founder and chief investment officer of Zerodha and True Beacon
Kamath had also revealed that the Gulf accounted for 20 percent of his fund’s global investments. The minimum investment required to invest in the True Beacon fund is $1 million.
Kamath’s retail brokerage platform Zerodha facilitates over three million orders daily with a daily turnover of over $10 billion, while his True Beacon’s Fund One has been consistently outperforming India’s NIFTY 50 benchmark, with an estimated year-to-date return of over 40 percent.
The Kamath brothers have also recently set up Rainmatter Foundation, a non-profit foundation that aims to support grassroots individuals and organisations, and companies working on problems related to climate change, with a focus on afforestation, ecological restoration, and livelihoods.
Rainmatter Foundation has reportedly committed a $100 million fund which will be disbursed as grants and funding for projects in the green economy.
“Amongst our core beliefs is that moving to a green economy and creating green jobs is an essential part of the changes needed for a better ecology. We also think that this needs to happen in a distributed fashion across geographies, with value and job creation everywhere and not being limited to a few urban centres,” Nithin Kamath wrote in a blog post recently.
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