Homegrown venture capital (VC) firm Kae Capital has closed its third fund at Rs 767 crore (around $100 million), joining a growing number of venture capital and private equity (PE) firms seeking to raise focused large funds in India despite global macroeconomic headwinds.
The industry-agnostic fund was oversubscribed, with participation from international and domestic institutional investors, family offices and startup founders, Kae Capital said in a November 24 statement.
Through the fund, Kae Capital will invest in pre-seed to pre-series rounds, the firm said, adding that its initial check size will be between $1 million and $3 million. Kae aims to invest in 25 companies through the fund and will focus on industries such as B2B (business-to-business) commerce, consumer technology, SaaS (software as a service), fintech and D2C (direct-to-consumer), including others, it said.
“Since we founded Kae Capital 10 years ago, the startup ecosystem in India has grown exponentially. After all this time, we have understood the hardships of building great companies. We believe that we are a true 24/7 partner for founders, helping them get through the good times when they need us most and the tough times most of all,” said Sasha Mirchandani, Founder and Managing Partner of Kae Capital.
Founded in 2012, Kae Capital claims to be the first institutional investor in unicorns such as Tata 1MG and Zetwerk, as well as soon-to-be unicorns such as Porter. Kae Capital also claims to have invested in 79 startups with a portfolio company valuation of $8.52 billion, with 14 exits.
Kae Capital has become the latest venture capital firm to raise a large Indian fund, joining the ranks of the world’s largest players, including Sequoia Capital, Accel, Elevation Capital and Matrix Partners.
Thirteen India-focused PE/VC firms will raise close to $7 billion from limited partners by 2022, according to data compiled by Moneycontrol. Still, investors expect the much-anticipated funding winter to last another 12 to 18 months.