Most of the donations had been made by members of the Indian community, Mr Kathiresan said.
Mr Palani's body would leave Wellington tomorrow morning at 7am, for Chennai in India where his family lives.
Mr Kathiresan said most of the money raised was used to see Mr Palani's body returned home - the rest would be donated to his parents.
"It's not an easy way to send him back to India to be honest. Nobody wants him to be like this and we are deeply saddened by this tragedy."
He said he had been in contact with Mr Palani's parents over the last week.
"They are doing okay... they are coping but I am sure by the time they see Boobesh they are going to suffer a lot."
Mr Kathiresan said he was overwhelmed by the communities support over the past week.
"I would like to thank all the people who made a contribution, and all the volunteers, including police, those who rescued him, and the ambulance."