Founders Nithin and Nikhil Kamath of Zerodha, recognized for establishing India’s largest retail brokerage, are progressively broadening their presence within the financial services sector. Their latest venture focuses on tech-driven lending.
The Kamath brothers have acquired a minority stake valued at ₹250 crore in InCred Holdings, the parent organization of InCred Financial Services Ltd (IFSL), an IPO-bound NBFC that leverages technology to concentrate on lending for consumers, SMEs, and education.
Why InCred? A Strategic Push into India’s Evolving Credit Landscape
Established in 2016 by Bhupinder Singh, a former Deutsche Bank executive, InCred has developed a versatile lending operation encompassing personal loans, student financing, and MSME credit. Its prominent investors include KKR, ADIA, Elevar Equity, and the Manipal Group. By March 2025, its loan portfolio reached ₹12,384 crore, showing a 37% year-on-year growth.
“India’s credit ecosystem is evolving rapidly, becoming more formal, digital, and accessible,” stated Nikhil Kamath. “InCred Group seems to understand this shift. They have built a formidable team, adopted a technology-first approach, and have a clear vision of the market’s direction. Supporting them is an investment in that expansive shift—a belief that responsible lending can grow without compromising core principles.”
InCred’s anticipated IPO in late 2025 will serve as a crucial test for modern NBFCs in public markets, a domain traditionally ruled by established players like Bajaj Finance and Muthoot Finance.
This investment aligns with a broader diversification strategy by the Kamath brothers, who have leveraged Zerodha’s profitability to create a varied investment portfolio.
Zerodha Broking Ltd currently holds minority stakes, ranging from under 1% to 1.2%, in various companies including RBL Bank, Federal Bank, BSE, CarTrade Tech, Radico Khaitan, and SpiceJet, according to public records compiled by Trendlyne.
Rainmatter Capital: Foundations for Future Growth
Founded in 2016, Rainmatter Capital is an early-stage investment initiative backed by Zerodha, which aims to support founders focused on fintech, climate tech, health, and storytelling for the public good. The platform emphasizes long-term, patient capital without the traditional VC constraints regarding exit timelines or board control.
“Although we identify as a ‘fund,’ we don’t perceive ourselves in that light. We are long-term investors focused on patience, not on quick exits,” states the Rainmatter website. The firm typically invests between ₹50 lakh and ₹100 crore in each venture.
To date, Rainmatter has supported over 120 startups, with 32 in fintech, 36 in health and fitness, 35 in climate, along with ventures in storytelling and related areas. Its fintech portfolio features notable names like Cred, Smallcase, Ditto Insurance, Wint Wealth, Jupiter, TurtleMint, Tijori, and Epifi.
“At @Rainmatterin, we invested around ₹275 crore in 47 startups last year. It might appear that we are putting money into too many startups, but we’re not a conventional VC and don’t operate like one. We do not take board memberships, have no exit clauses, and focus on patient capital for the long haul. We may be early, but we believe climate and health are poised to be major trends in the future. We view Rainmatter as a way to give back, supporting founders who aim to improve health for Indians and enhance the livability of our planet. Ultimately, what is the point of wealth if our planet is damaged and our health deteriorates?” Nithin Kamath stated in a post on X in January.
Gruhas: A Broader Perspective on Venture Capital
Established in 2021, Gruhas is a venture capital firm co-founded by Nikhil Kamath and Abhijeet Pai from Puzzolana Group. It emphasizes early to growth-stage investments, focusing thematically on proptech, climate tech, consumer brands, media, and AI. The firm has already invested in over 45 companies.
Gruhas manages various investment vehicles, including:
Earth Fund, a ₹200 crore SEBI-registered AIF concentrating on sustainability, mobility, and innovations in real estate.
Gruhas Collective Consumer Fund (GCCF), a ₹150 crore fund in collaboration with Collective Artists Network, designed to support next-generation consumer brands.
Recent investments include creator-led commerce startup LehLah, D2C brand Bummer, lifestyle venture The Quorum Club, and clean-tech startup Ossus Biorenewables.
Kamath Associates and NKSquared: Strategic Investments
Nithin and Nikhil Kamath operate through their family offices, Kamath Associates and NKSquared, which have directly invested in both public and private companies, including:
Nazara Technologies: Involved in multiple preferential funding rounds, holding a combined stake of nearly 4%.
KNAV Advisory Inc.: Acquired a minority stake in this US-based accounting firm.
Rare Rabbit: Fashion brand, with a 4.13% stake.
Subko Coffee: Specialty coffee chain; secured a 25% stake in Series B.
True Beacon: Navigating Public Markets with a Private Approach
Co-founded in 2019 by Nikhil Kamath and Richard Pattle, True Beacon is a SEBI-registered asset management firm catering to ultra-HNIs. It offers PMS and AIF products, focusing on a performance-fee-only model. As of 2025, it is said to manage over ₹1,300 crore in AUM.
True Beacon’s flagship fund has achieved an 18-22% CAGR since its inception. The firm also operates from GIFT City to attract global capital into Indian markets.
WTFund: Supporting Young Innovators
Recently launched by Nikhil Kamath, WTFund provides non-dilutive grants to individuals under 25 with innovative ideas. This fund offers both financial support and mentorship. Its portfolio includes startups such as:
Nasadya: Solid-state hydrogen storage technology.
InnerGize: A wearable device designed for real-time stress relief.
Armatrix: Robotic arms developed for industrial inspection.
ReferRush: Referral technology tailored for e-commerce brands.
Other Personal Investments
Nikhil Kamath has also invested in various companies including Ather Energy, The Mainstreet Marketplace, Nourish You, and VRO Hospitality, among others.
When reflecting on his best and worst investments over the past two decades, Nikhil Kamath mentioned in a 2023 interview with CNBC-TV18, “My first investment was in a company called Maarsoft. I was just a kid working in a call centre at 17, earning around ₹7,000-8,000, and I invested all that in Maarsoft shares. The ₹4 stock rose to ₹15 in a month or two, sparking my interest in trading,” he reminisced.
Regarding his worst investment, he expressed, “Investing is contagious. Trading resembles dating. It seems as if the markets have emotions that draw you in—they often feel welcoming at first.”
He has openly expressed doubts about inflated valuations and instead prefers to support businesses with solid fundamentals and strong unit economics. This approach underpins many of his recent investments, including InCred.
The Kamath brothers’ investment strategies illustrate a clear pattern: a blend of financial services and consumer-focused businesses, as well as tech-driven ventures. From public markets and early-stage fintechs to lending platforms, lifestyle brands, and sustainable technologies, their choices represent a diverse yet coherent interest in modernizing segments of the Indian economy. They typically steer clear of conventional venture capital methods, opting instead to invest in ventures they believe in for the long haul, with their investment scale indicating a broader ambition to influence the future of India’s financial and consumer sectors.
