Rainmatter, the fintech investment arm of Zerodha Broking, has announced a strategic Series-A investment in Capitalmind Financial Services (CFSPL), a SEBI-registered portfolio management company. This marks Capitalmind’s first institutional funding round and comes on the heels of its foray into the mutual fund space.
The investment aligns with the reopening of Capitalmind Mutual Fund’s debut scheme — the Capitalmind Flexi Cap Fund — for public subscription on August 6. The fund had a successful New Fund Offer (NFO), raising ₹45 crore. Notably, 75% of the investments came via direct plans, indicating high investor confidence.
Interestingly, nearly half of the direct plan contributions came through Zerodha’s Coin platform, showcasing the natural synergy between the two fintech players.
The remaining 25% of NFO assets were mobilized via regular plans, underlining a strong early response from the mutual fund distribution community. Capitalmind’s flat-rate brokerage model, which avoids complicated commission structures, has been well-received by distributors looking for transparency and fairness.
This investment formalizes a long-standing partnership between Zerodha founder Nithin Kamath and Capitalmind founder Deepak Shenoy. Shenoy was one of Zerodha’s early advisors in 2010 and played a crucial role in helping establish the platform’s credibility.
Both firms share a deep commitment to investor education. Zerodha’s ecosystem — including Varsity, TradingQnA, and the Zero1 YouTube network — mirrors Capitalmind’s legacy of financial blogging, podcasting, and research insights, creating a knowledge-driven foundation for their respective audiences.
Nithin Kamath, Founder and CEO of Zerodha and Rainmatter, highlighted the ethos behind the investment:
“We want to back innovative companies that share our mission of helping Indians do better with their money. My conversations with Deepak go back to 2009, and I’ve always admired Capitalmind’s transparent and data-driven approach.”
He further clarified that this is a financial investment, with no board seat or management control, and that Rainmatter’s stake is limited to 10% as per SEBI guidelines.
Deepak Shenoy, MD and CEO of Capitalmind Asset Management, described Rainmatter’s backing as a powerful validation:
“Nithin sparked my early interest in quantitative trading, which shaped Capitalmind’s evolution. From a blog to a full-fledged asset management firm, this investment fuels our mission to simplify investing for Indians.”
Shenoy emphasized the gap in scalable fee-only advisory services in India and noted that Capitalmind aims to bridge this gap by building accessible, solution-oriented products, similar to target-date funds proposed in SEBI’s recent consultation.
Looking forward, Capitalmind plans to scale two separate business verticals:
The new mutual fund entity will focus on innovative and scalable investment products for the retail investor segment, targeting affordability, transparency, and digital access.
The PMS division will continue to cater to High Net-Worth Individuals (HNI) and Ultra-High Net-Worth (UHNW) clients by offering tax-efficient asset allocation strategies. These strategies are largely structured around mutual fund baskets, with the division currently managing over ₹450 crore in assets.
Conclusion
Rainmatter’s investment is more than just capital—it’s a shared vision to reshape India’s wealth management landscape with data, transparency, and investor-first solutions. As Capitalmind scales its mutual fund and PMS offerings, the partnership with Zerodha is set to accelerate financial inclusion and innovation across the board.