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Business News/ Companies / Start-ups/  Zerodha’s Kamath spots trend in investing

Mumbai: Zerodha’s co-founder Nikhil Kamath intends to invest in companies that are capitalizing on India’s consumption growth, through his private investing vehicles. Kamath had recently invested in Nazara Technologies, gaming and esports business .

“Right now, I am looking at opportunities in the India consumption story. We are looking at other segments such as prop-tech," he said.

On Monday, Nazara Technologies said it has raised 100 crore from two entities backed by the Kamath brothers, Nitin and Nikhil, the co-founders of broking firm Zerodha. This investment was in private capacity and raises the family’s stake in the company to 3.5%.

“This concept of investing in India has been encouraged —other investors like Rakesh Jhunjunwala did a fairly good job. This trend of Indian companies being owned by foreign investors has to change and more Indian investors like me have to invest in such companies," Kamath added.

The brothers invest via their investment firm Kamath Associates & NK Squared, which has backed consumer focussed companies like meat startup Licious and Third Wave Coffee. Nikhil Kamath declined to specify the quantum of investment by the firm, but noted that consumption is the common theme for most portfolio firms. “Per capital income for Indians is rising, and $5,000 per person is the magic number. Once we reach that point, people will spend and this is a pre-emptive bet towards that."

In gaming, there is no other listed entity in the segment, which made Nazara an attractive bet, he said. “At this point in time, I am not looking at any other gaming business," he said.

Kamath said that typically he invests 50% in equity, 10% in gold and the rest in debt instruments. Within equity, the majority of the investments are in public entities.

While the Kamaths gained visibility through the success of their discount broking platform Zerodha Broking Ltd, Nikhil Kamath is also the founder of True Beacon, a category III focussed alternative investment vehicle that invests in the top-50 Nifty companies in India. On Monday, Zerodha entered the asset management business through two index focussed direct mutual funds.

Nikhil Kamath said that he is neither involved in the running of the Zerodha asset management business or True Beacon’s asset management business. Both are run by separate teams, he said.

Most of Nikhil Kamath’s time now is spent scanning for personal investments, he added.

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Ranjani Raghavan
Ranjani Raghavan writes about the Indian investment ecosystem with a focus on venture capital, private equity and startups. Outside of work, she enjoys sketching and birding. You can find her @ranjanir_
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Updated: 05 Sep 2023, 11:43 PM IST
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