Capitalmind Financial Services Pvt Ltd (CFSPL), a SEBI-registered portfolio manager known for using data-driven investment strategies, has raised its first institutional funding.
The Series A round was led by Rainmatter, the fintech investment arm of Zerodha Broking Ltd.
The funding comes at the same time as Capitalmind begins its mutual fund journey. Its Flexi Cap Fund, which collected INR 45 crore during the NFO, is reopening for subscriptions today.
According to a statement from Capitalmind, around 75% of the funds came through direct plans, with nearly half of those investments made via Zerodha’s Coin platform.
“This is a financial investment to support them as they build out their asset management company,” said Nithin Kamath, founder and CEO of Zerodha and Rainmatter, according to a statement. “In line with SEBI regulations, our stake is capped at 10%, and we will not have a board seat, ensuring their independence.”
The partnership is a formal milestone in the long-standing relationship between Nithin Kamath and Capitalmind founder Deepak Shenoy, who had supported and advised Zerodha in its early stages.
“Nithin’s work in sparking my interest in quantitative trading years ago was a pivotal moment for me,” said Shenoy, who now heads Capitalmind Asset Management. “Having Rainmatter invest in our vision is a powerful validation of our journey from a financial blog to a full-stack asset management firm.”
“The professional fee-only advisory ecosystem hasn’t scaled as hoped, leaving investors to navigate a complex landscape. We aim to bridge that gap through accessible, solution-oriented products, much like the target-date funds discussed in SEBI’s recent consultation paper,” Shenoy added.
The new funding will support Capitalmind’s two-fold growth plan—making its mutual fund business more accessible to retail investors, while also enhancing its wealth management services through its PMS (Portfolio Management Services) arm.
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