Kae Capital’s Maiden Fund Sees Multi-Bagger Returns from Porter, HealthKart

When Kae Capital launched its first fund in 2012, seed investing in India was still an experiment. Over a decade later, the early-stage venture firm has turned that bet into one of the country’s most successful maiden funds.

Two of Kae’s earliest investments Porter and HealthKart have together returned its Fund I multiple times over through recent secondary transactions. Porter alone has returned more than twice the fund’s value, while HealthKart has returned the fund on its own, with more value yet to be realised. As of September 2023, Kae’s India vehicle from Fund I has fully exited with a 3.6x DPI (Distributions to Paid-In Capital), while its overseas vehicle is on track to deliver over 5x DPI, one of the best maiden fund performances by a homegrown VC firm.

Fund I backed 32 companies across India and the US, including Tata 1MG, Certa, Fynd, Dailyround, Airwoot and Eventifier. The fund catalysed over $900 million in follow-on capital, creating tens of thousands of jobs and more than $2.7 billion in enterprise value.

“When we raised Fund I, seed investing in India was almost unheard of. Our goal was simple, to back extraordinary founders at their earliest stages and stand with them across cycles,” says Sasha Mirchandani, Founding Partner at Kae Capital. “To now deliver a top-decile DPI number on that very first fund is deeply gratifying.”

From Early Bets to a Platform

If Fund I proved the model, the subsequent funds cemented Kae’s approach. Fund II backed category leaders such as Zetwerk, Nazara Technologies, and Snapmint, while Fund III, launched in 2021, is already showing traction with Traya, Foxtale, and RecommerceX.

Across its three funds, Kae has backed three unicorns, seeded five companies that crossed $100 million in revenue, and helped create over 56,000 jobs. Its portfolio has generated $7.7 billion in enterprise value and attracted $2 billion in follow-on capital.

“Fund I’s DPI is not just a number, it’s a symbol of what’s possible when early conviction meets enduring partnership,” says Gaurav Chaturvedi, Partner at Kae Capital.

The first fund also shaped Kae’s investment approach. Its partners say the experience reinforced the value of staying patient through market cycles, of backing adaptable founders over flashy ideas, and of building relationships that can withstand difficult conversations. “Capital doesn’t build companies, people do,” say the partners, a belief reflected in Kae’s founder NPS score of 88%.