Rainmatter Leads INR 19.5 Cr Investment in PrimeInvestor

Wealth-tech platform PrimeInvestor has raised INR 19.5 crore (around USD 2 million) in its first external funding round, led by Rainmatter, as it looks to expand its recently launched portfolio management services (PMS).

The company clarified that the investment is purely financial, with no strategic involvement from Rainmatter. “They have been very clear that this is a financial investment and we continue to operate independently,” said co-founder Srikanth Meenakshi.

Founded in 2020 by the team behind FundsIndia, PrimeInvestor initially operated as a research platform offering curated investment insights and model portfolios. However, the firm identified a gap between advice and execution among investors.

“We realised advice alone isn’t enough, as investors lack time to manage portfolios,” Meenakshi said, adding that analysis of over 12,000 portfolios worth more than INR 25,000 crore revealed sub-optimal asset allocation even among affluent investors.

To address this, the company has introduced a discretionary PMS offering with a minimum investment threshold of INR 50 lakh. The product aims to combine mutual funds and equities while focusing on asset allocation and risk management.

“We are positioning PMS as a wealth solutions platform, combining mutual funds and equities with a focus on asset allocation and risk management,” said Co-founder Vidya Bala.

PrimeInvestor follows a fee-only model, charging between 0.6% and 1.2% annually, without performance fees. “Our strategy prioritises downside protection, aiming to outperform while limiting losses,” Bala added.

Since its launch in January, the PMS vertical has onboarded about 100 customers and manages around INR 62 crore. The firm plans to scale operations, expand research capabilities, and introduce new products, including offerings for retirees.