Zerodha is an Indian stock brokerage that was set up by a stockbroker and entrepreneur Nithin Kamath in 2010. It was one of his dreams to launch an affordable trading platform.
Currently, Zerodha has more than 1.5 million retail active clients, and they account for over India’s 15% of the retail trading volume. Moreover, Zerodha is reliable and safe as it’s regulated by SEBI (Securities and Exchange Board of India), India’s top-rated regulator.
Let’s see how Zerodha and Rainmatter decided to invest 100 million INR in ERPnext, the open-source enterprise resource planning platform.
ERPNext was founded by Rushabh Mehta in 2008. It provides variable modules for payroll, inventory management, support CRM, and sales.
ERPNext has hosted cloud resolution for companies with competitive costs. In the face of Rainmatter, Zerodha funds around millions of rupees as a minority stake for startups.
Here are the various modules the ERPNext provides- human resources, ticketing, support CRM, inventory management, sales, employee wellness, and payroll.
This project is built by using the Frappe Python framework. It allows rapid customization and also helps in building complicated business workflows and applications. Currently, there are more than 5000 customers of ERPNext, and one of them is Zerodha.
Here are the words that Rushabh Mehta, CEO, and founder of ERPNext, said on receiving the investment-
“This is a strong signal of the arrival of ERPNext as an alternative to the large, expensive, and proprietary ERP products. ERPNext is powerful, scalable, and 100% open-source, and with the investment, we will continue investing in the product and the community.”
What Zerodha and Rainmatter say about their Funding ERPNext Decision
The funding decision of the Rainmatter and Zerodha for ERPNext is because of the rapid growth of Zerodha, in which ERPNext has played an important role.
Kailash Nadh, the CTO of Zerodha and Rainmatter, says, “ERPNext has played a significant role in helping us rapidly build and scale the Zerodha technology stack into the largest stockbroking platform in India.”
Hence, Zerodha, through Rainmatter, invested between $100k -$1M as an amount for a small stake in the startups where more Indians are motivated to invest in mutual funds, stocks, ETFs, G-Secs, and Bonds and participate in the Indian economy directly.
Also, Kailash Nadh said, “We are very happy to be able to support ERPNext, the best Free and Open Source (FOSS ) project out of India, and also make this investment into the FOSS ecosystem here…Rushabh Mehta founded ERPNext 10 years ago as a system to help manage his family’s business, and since then, he and his team have turned it into a sophisticated and expansive piece of technology…The team of passionate technologists and FOSS developers are now at a juncture where they have to expand to non-technology areas such as sales and to consult to cater to the growing list of enterprise, B2B customers.”
These words are from the latest bet of Rainmatter on a startup. The incubation fund/platform says that it helps companies with workspaces and revenue from their side. Rainmatter already led a funding angel in a learning firm for children, and they are- ImStrong, QShala and Terra.do Inc., digital learning platform LearnApp and Sensibull.
Finally, let’s hope that ERPNext keeps increasing its modules and being an Open-Source platform, which helps more companies with their enterprise resource planning. If this article helped you with your answers, we are waiting for your kind words of appreciation. Connect with BestCheck’s team through the comment section, and we will be back with the solution to your doubt in no time.
Shreyal Shingala is a Content Writer and also a Product tester at BestCheck. Overseeing the content and products, she edits our preceding articles too. Along with that, she loves to spend time with her family when she got her leisure time.
Previously, she worked as a content writer and researcher for a digital marketing agency and has written in different niches like blogs, comparison guides, entertainment, and many more.