Zerodha founders Nithin and Nikhil Kamath, long credited with building India’s largest retail brokerage, are steadily expanding their footprint across India’s financial services landscape. Their latest bet is on tech-driven lending.
The Kamath brothers have jointly picked up a minority stake worth ₹250 crore in InCred Holdings, the parent company of InCred Financial Services Ltd (IFSL), a tech-enabled IPO-bound NBFC focused on consumer, SME, and education lending.
Why InCred? Betting on India’s Credit Shift
Founded in 2016 by Bhupinder Singh, a former Deutsche Bank executive, InCred has built a diversified lending business across personal loans, student financing, and MSME credit. It counts KKR, ADIA, Elevar Equity, and the Manipal Group among its marquee investors. As of March 2025, its loan book stood at ₹12,384 crore, reflecting a 37% year-on-year growth.
“India’s credit ecosystem is changing fast, more formal, more digital, and more accessible,” said Nikhil Kamath in a statement. “InCred Group seems to get that. They’ve built a strong team, a technology-first approach, and a clear view of where the market is headed. Backing them is a bet on that broader shift- and the belief that responsible lending can scale without losing sight of fundamentals.”
InCred’s IPO, expected in late 2025, will be a critical test for new-age NBFCs in public markets, a space historically dominated by legacy players such as Bajaj Finance and Muthoot Finance.
The investment aligns with a broader diversification strategy by the Kamath brothers, who have steadily leveraged the profitability of Zerodha into building a wide-ranging investment portfolio.
Zerodha Broking Ltd itself holds small minority stakes, ranging from under 1% to 1.2%, in companies like RBL Bank, Federal Bank, BSE, CarTrade Tech, Radico Khaitan, and SpiceJet, according to public filings compiled by Trendlyne.
Rainmatter Capital: Building Blocks for the Future
Launched in 2016, Rainmatter Capital is an early-stage investment initiative backed by Zerodha, aimed at supporting founders working on fintech, climate tech, health, and public-interest storytelling. The platform focuses on long-term, patient capital without traditional VC expectations of exit timelines or board control.
“Though we are a ‘fund,’ we’ve never thought of ourselves as one. We are patient long-term investors and aren’t in it for quick exits,” says the Rainmatter website. The firm typically invests between ₹50 lakh to ₹100 crore in each company.
Rainmatter has backed over 120 startups to date, including 32 in fintech, 36 in health and fitness, 35 in climate, and others in storytelling and adjacent domains. Its fintech portfolio includes Cred, Smallcase, Ditto Insurance, Wint Wealth, Jupiter, TurtleMint, Tijori, and Epifi, among others.
“At @Rainmatterin, we invested about ₹275 crore in 47 startups last year. It may seem like we’re investing in too many startups, but we aren’t a typical VC and don’t function like one. We don’t take board seats, have no exit clauses, and have a perennial structure (patient capital)—that is, we are in it for the long term. We may be early, but our thesis right now is that climate and health will be megatrends of the future. Considering that we think of Rainmatter as one way of giving forward, we want to back founders working on helping Indians be healthier and making the planet more livable. Anyways, what is the use of the money if the planet we live on is destroyed and our health is ruined?” Nithin Kamath wrote in a post on X in January.
Gruhas: Venture Capital with a Broader Lens
Gruhas is a venture capital firm co-founded by Nikhil Kamath and Abhijeet Pai (Puzzolana Group) in 2021. It targets early to growth-stage investments with a thematic focus on proptech, climate tech, consumer brands, media, and AI. The firm has backed over 45 companies so far.
Gruhas manages multiple vehicles, including:
Earth Fund, a ₹200 crore SEBI-registered AIF focusing on sustainability, mobility, and real estate innovation.
Gruhas Collective Consumer Fund (GCCF), a ₹150 crore fund in partnership with Collective Artists Network, which supports next-gen consumer brands.
Its 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 Stakes
Nithin and Nikhil Kamath also operate through their respective family offices, Kamath Associates and NKSquared. These vehicles have made direct investments in public and private companies, including:
Nazara Technologies: Participated in multiple preferential rounds, with a combined stake nearing 4%.
KNAV Advisory Inc.: Minority stake in US-based accounting firm.
Rare Rabbit: Fashion brand, 4.13% stake.
Subko Coffee: Speciality coffee chain; 25% stake acquired in Series B.
True Beacon: Public Markets with a Private Lens
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 with a performance-fee-only model. The firm reportedly manages over ₹1,300 crore in AUM as of 2025.
True Beacon’s flagship fund has delivered 18-22% CAGR since inception. It also operates from GIFT City to attract global capital into Indian markets.
WTFund: Backing Young Innovators
Launched by Nikhil Kamath, the most recently launched WTFund provides non-dilutive grants to individuals under 25 years of age with breakthrough ideas. The fund supports both capital and mentorship. Its portfolio includes startups like:
Nasadya: Solid-state hydrogen storage tech.
InnerGize: Wearable device for real-time stress relief.
Armatrix: Robotic arms for industrial inspection.
ReferRush: Referral tech for e-commerce brands.
Other Personal Bets
Nikhil Kamath has also invested in companies like Ather Energy, The Mainstreet Marketplace, Nourish You, and VRO Hospitality, among others.
When asked what his best and worst investment in the last 20 years was, Nikhil Kamath had told CNBC-TV18 in an interview in 2023, “The very first investment I made was in a company called Maarsoft. I was a kid working in a call centre at 17. I used to get paid around ₹7,000-8,000, and I took all that money to buy Maarsoft shares. The ₹4 stock went up to ₹15 in a month or two, and that got me into trading,” he recalled.
On his worst investment, he said, “It is infectious. Like dating. Trading is like dating. It almost feels like markets have emotions. And they have a way to draw you in. They’re always nicer at the beginning.”
He has publicly expressed scepticism of frothy valuations and instead backs businesses with strong fundamentals and unit economics. This discipline underpins many of his recent investments, including InCred.
The Kamath brothers’ investments show a clear pattern: a mix of financial services, consumer-focused businesses, and tech-driven ventures. From public markets and early-stage fintechs to lending platforms, lifestyle brands, and green tech, their bets reflect a broad but consistent interest in formalising and modernising parts of the Indian economy. They tend to stay away from the typical venture capital approach, choosing instead to back businesses they believe in for the long term, with the scale of their investments suggesting a wider ambition to shape the future of India’s financial and consumer landscape.
