At a time when many venture capital funds in India are hitting the brakes on climate technology investments, Rainmatter Capital, the venture investing arm of stock brokerage giant Zerodha, is stepping on the accelerator. The firm is committing to a long-term vision for the sector, undeterred by the current market caution or the struggle for exits that has spooked other investors.
A Patient Capital Approach in a Volatile Sector
Rainmatter's strategy is built on patience. Dinesh Pai, who leads the firm's venture investments, emphasises a horizon of 10 to 15 years for their climate-tech bets, insulating them from short-term market fluctuations. "All the climate tech bets we’re backing, we have a 10-15 year lens on them. That’s why we’re not worried about the short term," Pai stated in an interview.
This commitment is backed by substantial capital. Since initiating its investment journey in 2016, Rainmatter has deployed a total of ₹350 crore across 43 climate-tech startups. The firm's dedication extends beyond for-profit investing through its non-profit arm, the Rainmatter Foundation, established in 2020, which provides grants for climate-related causes.
Their steadfast stance contrasts sharply with the broader market trend. Data from Venture Intelligence reveals a significant cooling in the climate-tech segment, with average cheque sizes plummeting from $52 million in 2023 to $27 million in 2025. "We never started investing in climate because other VCs were investing. It’s not like we’re going to stop now because others have," Pai remarked, highlighting their independent investment thesis.
Focus Beyond the EV Hype: Recycling, Farming, and Climate Finance
While a large portion of Indian climate-focused venture capital has flowed into electric vehicles (EVs) and mobility, Rainmatter has charted a different course. Pai pointed out that EV and mobility sectors have enjoyed ample access to capital, prompting Rainmatter to seek opportunities in underserved areas.
Most of Rainmatter's portfolio companies are solving problems in niche sectors such as:
- Recycling agricultural waste
- Providing climate insights and data
- Climate financing solutions
- Controlled and sustainable farming
Its portfolio includes innovative names like Alt Mat, Amwoodo, Aurassure, Climes, and Ossus Bio. A notable success story is Akshaykalpa, an organic dairy brand, where Rainmatter invested in Series B and Series C funding rounds. That said, the firm hasn't completely avoided EVs, having recently led a $3 million pre-Series A round in Naxatra Labs, a manufacturer of EV motors and controllers.
Structure Enabling Long-Term Vision and Future Plans
Rainmatter's ability to be a patient investor is structurally enabled. The firm invests from both its new ₹1,000 crore Alternative Investment Fund (AIF) and the Zerodha balance sheet. Crucially, its AIF has a long duration of 15 years, with an option to extend for two more years.
Unlike traditional VC funds with demanding limited partners, Rainmatter's structure allows it to deploy capital without the pressure to force exits within tight timelines. "We don't want to push some of these companies to give us exits," Pai explained, though he clarified that distributions remain important for the fund's sustainability.
To date, Rainmatter has not fully exited any of its investments, having only made a partial exit in fintech platform CRED via a secondary round. The firm's overarching mission, as articulated by Zerodha founders Nikhil and Nithin Kamath, is to support entrepreneurs solving critical, often overlooked problems that may not attract conventional high-growth VC capital.
This flexible, long-term approach has coincided with a surge in Rainmatter's deal-making activity. The firm has become one of the most active investors in India, making 24 investments in 2025 and 28 in 2024, according to Venture Intelligence. Pai disclosed a deployment of ₹400-450 crore over the past year, though he stressed there are no rigid internal targets for future deployment pace.
Overall, Rainmatter manages assets worth roughly ₹1,600 crore across 142 investments spanning fintech, health and fitness, media, climate, and other industries. As the climate-tech landscape evolves, Rainmatter's patient, conviction-driven capital presents a distinct and resilient model in India's startup ecosystem.
