We were never in with any agenda: Nikhil Kamath on WTF podcast

Nikhil Kamath says his two funds dedicated to young entrepreneurs have seen an impressive response, attracting diverse and innovative business ideas. The first investment round for WTF Fund (which looks at opportunities chiefly in the home and beauty segment) launched in October has concluded, and further announcements are anticipated later this month. Kamath, however, hinted that most of the funding has been in the restaurant space.

While the WTF Fund focuses on aspiring young entrepreneurs, the Gruhas Collective Consumer Fund, a joint effort by Collective Artists Network, a platform for the creative community, and Gruhas, a venture capital firm that looks at investments in India only targets strategic sectors and aims to bridge Bengaluru and Mumbai.

In an interview with Storyboard18, Kamath, the Zerodha co-founder and CEO and philanthropist, discusses expectations from the interim budget, time management and the investment landscape in 2024. Edited excerpts:

You launched the WTF Fund for entrepreneurs under 22 years of age last October. What has been the response so far? Have there been any particular business ideas that stood out as innovative or promising?

When we launched the WTF Fund for entrepreneurs under 22, we wanted to target an age bracket that traditionally faced barriers in accessing capital and resources. Along with Ananth Narayanan of Mensa Brands, Raj Shamani of House of X and Kishore Biyani of the Future Group, I launched the fund on the WTF podcast's 11th episode, and we've already finished the first round of investments. We plan to make the announcement in the latter part of January. Nonetheless, WTF Fund has been launched in the space of content creation, restaurants, lifestyle and EV. We look forward to seeing how this pans out.

As an entrepreneur and influencer, the WTF Podcast is an interesting venture. What has worked well for the podcast? And how do you envision its trajectory?

I think what worked for us is that we were never in with any agenda. We saw a gaping hole online—a lack of genuine knowledge and actionable insights. So we set out to build a knowledge bridge for anyone to launch themselves from zero to one in any industry. And to take it a step further, we created the WTF Fund, providing a support system to young entrepreneurs who have the drive to launch something of their own.

Regarding the Gruhas Collective Consumer Fund, the focus on areas like fashion, lifestyle, health, wellness, coffee and beverages, personal care, and food services is intriguing. What led to the selection of these specific categories, and what potential do you see in these sectors for investment and growth?

India is growing. We have a rising section of the population who are looking at homegrown brands for their needs. While foreign brands are adequate enough, it is the Indian brands of today that are truly catering to the country’s unique tastes.

Operationally, we analyse all market categories for potential investment opportunities. Vijay (Vijay Subramaniam. Group CEO and founder at Collective Artists Network), Abhijeet (Abhijeet Pai, co-founder, Gruhas Proptech) and I will then focus on companies with a competitive edge where Gruhas and Collective can add value. This targeted approach ensures we invest in promising companies and maximise our impact on the market.

You've mentioned that the Gruhas Collective fund aims to build a bridge between Bengaluru and Mumbai. Could you provide more details on how this bridge-building process will unfold and the strategic importance of connecting these two cities within the context of the fund's objectives?

Our vision is to establish a direct connection between Mumbai's distribution networks and Bengaluru's technological expertise. Through the elimination of intermediaries, our goal is to cultivate an ecosystem where companies can operate with enhanced efficiency, fostering an alignment of network capital. We will primarily be investing in startups in the consumer sector.

Looking ahead to 2024, what is your outlook on the overall investment landscape? Do you anticipate a trend of more funds being announced to support young entrepreneurs, and what factors might influence this trajectory?

With market corrections underway, valuations have become a lot more reasonable , creating potential opportunities for long-term investors. The young entrepreneurs of today think beyond traditional models. They are tapping into the power of technology, data and AI, and are poised well to build brands that solve real-world problems and generate widespread attention, not just funding. With Gruhas, for example, we have backed brands such as premium sneaker maker Mainstreet that have integrated tech and consumer trends and tapped into the creator space well.

As someone deeply involved in the financial and entrepreneurial landscape, how do you perceive the current regulatory environment? With the budget round the corner, are there any changes or reforms that you believe would further foster innovation and growth, particularly for startups and investment funds?

I think it is a little premature to anticipate how the budget would pan out, but overall I believe the focus would be on the development of infrastructure and higher capital expenditure on renewable energy, among others. It's a waiting game, and once the budget is announced, I believe we will be in a better position to discuss its impact.

Your interests in climate change, energy, education and health are well known. Tell us a little about any ongoing projects or initiatives that you might be involved in within these areas.

Currently, I am involved with the Giving Pledge, YIPP (where we are focusing on education in rural areas), British Asian Trust, Rainmatter, GivingPi and YUVA (all entities involved in philanthropy or health). They are sound organisations doing splendid work. But we are building a lot more this year and being more hands-on in the fields of entrepreneurship, inclusion and education. Additionally, under the banner of WTF, we have donated a sum of Rs 2.5 crore to different charities.

Moving on from investments and money matters—the number of hours we work in a week has been the subject of a big debate for some time now. You are an entrepreneur, a content creator and a philanthropist, how do you manage your time and ensure a balanced approach to your various ventures?

I try to keep it simple—form a routine and stick to it and I think it is important for people to do the same. When certain times are earmarked for everyday routine, your mind is relatively freer to explore and grow. I keep working on trying out different routines recommended by people including American podcaster Andrew Huberman, etc. I think people should experiment and try to find a flow that works for them.