FinTech: Kamath’s Rainmatter VC Incubator Mulling Alternative Investment Fund

January 26, 2021 | FinTech, Latest News, News, Venture Capital

The fund would be open to investors in the Gulf region.

Indian entrepreneur Nikhil Kamath, who achieved fame and fortune by bootstrapping Zerodha, India’s first discount broker, to unicorn status, is setting up a fund for investing in fintechs. Rainmatter, Kamath’s VC arm, is considering the launch of an Alternate Investment Fund that would be open to Gulf investors, and as well invest in startups in that region. (Arabian Business)

Riding on the success of Nikhil Kamath’s True Beacon

The proposed fund could benefit from the halo effect of True Beacon, Kamath’s hugely successful investment fund.

The fund has a minimum investment threshold of $1 million. Regardless, True Beacon has drawn investments from ultra-rich non-resident Indians from the Gulf region. The investments in the fund originating from the Gulf are growing by 20% month on month, according to Kamath. Gulf investors now hold about 20% of the fund’s global investments.

The True Beacon Fund One has garnered an estimated year-to-date return of over 40%, outperforming India’s Nifty 50 benchmark.

New fintech fund

“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.

He said the fund could also look for opportunities in the Gulf.

“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.”

Related Story:  Zerodha, India’s Largest Discount Broker, Turns Bootstrapped Unicorn

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