Rainmatter backs Blostem as 'boring but critical infrastructure'

Rainmatter Leads Blostem's Pre-Series A

In a significant endorsement of Blostem's infrastructure-first approach, Rainmatter — Zerodha's investment arm focused on climate and fintech — has led Blostem's pre-Series A funding round.

Rainmatter's investment thesis has always centered on backing foundational infrastructure that enables the broader ecosystem to thrive. Their characterisation of Blostem as "boring but critical infrastructure" perfectly captures what the company has been building since 2021.

Why This Matters

The pre-Series A round validates Blostem's approach to building unified banking infrastructure. Rather than competing with fintech platforms, Blostem powers them — providing the API rails that connect banks with digital distributors.

Key highlights from the round:

• Lead investor: Rainmatter (Zerodha's investment arm)
• Round type: Pre-Series A
• Use of funds: Expanding bank partnerships and product verticals
• Strategic value: Access to Zerodha's extensive fintech network

The Infrastructure Play

Blostem's model is analogous to what cloud providers did for software — abstracting away the complexity of banking integrations so that fintech platforms can focus on what they do best: building great user experiences.

With this funding, Blostem plans to expand beyond Fixed Deposits into Recurring Deposits, UPI Credit Lines, and more, further cementing its position as India's banking infrastructure layer.

What Rainmatter Sees

Rainmatter's portfolio includes some of India's most promising fintech infrastructure companies. Their investment in Blostem signals confidence that the banking-as-a-service model is not just viable but essential for India's financial inclusion goals.

The "boring but critical" label is one Blostem wears with pride — because the best infrastructure is the kind you never have to think about.