Nikhil Kamath endorses urgent fundraising push amid market uncertainty

Zerodha co-founder Nikhil Kamath has publicly aligned himself with a blunt message to startups: raise capital now. Late Thursday, he replied "100" with an emoji to a post on X warning that next year could bring a more difficult fundraising environment. The original post, shared by an unidentified user, urged startups to act quickly rather than delay.

The exchange follows a period where Indian startups have seen mixed funding trends. Bengaluru-based companies accounted for a large portion of the country’s startup funding in the first nine months of 2026, though the overall volume has varied. AI startups have continued to attract attention—Instinct’s $350 million raise at a $2.5 billion valuation in August was one of the largest deals—but the deal also sparked debate over its valuation and data practices. Other recent raises, like Onix’s $5 million pre-seed and Bynario’s funding round, reflect a market where some startups are still securing capital, though often at earlier stages or with niche focus areas.

Kamath’s position is striking given Zerodha’s history. The brokerage has grown without relying on venture funding, and Kamath has often questioned the sustainability of rapid, investor-backed scaling. His response to the post suggests he may see a change coming—one that could push even self-funded startups to rethink their strategies.

Recent funding activity in India has shown fluctuations. In one week in August, startups raised $218.69 million across 26 rounds, with AI and deeptech driving much of the activity. However, the size of rounds has varied, with some reports noting a preference for smaller, more targeted investments. Whether this signals a broader shift remains unclear, but Kamath’s reaction hints at concern.

The question now is how founders will respond. Raising capital early could help startups avoid potential challenges, but it might also mean accepting less favorable terms. For those unable to secure funding quickly, the path forward could involve slower growth or tougher decisions. What’s certain is that the conversation around fundraising has taken on a new urgency.

Sources: msn.com