Kae Capital raises $30m for fund focused on local start-ups

Kae Capital, which invests in early-stage companies, has raised $30 million from existing and new investors as part of its second fund.

The firm will be raising an additional $10 million soon, said Sasha Mirchandani, founder and managing director of Kae Capital, on Thursday. He declined to share the names of the investors.

Kae Capital raised its maiden $25 million fund in March 2012. Investors in the first fund included venture capital firms Sequoia Capital, SAIF Partners and Omidyar Network; three global fund-of-funds—Axiom, Squadron Capital and Morgan Creek Capital Management; and a few high-net-worth individuals such as Manish Kejriwal, managing partner of Kedaara Capital, and Deep Kalra, founder and chief executive of online travel company MakeMyTrip Ltd.

From the first fund, Kae has invested in nearly 25 start-ups, including online fashion portal Myntra (acquired by online marketplace Flipkart in 2014), mobile advertisement technology InMobi and US-based data analytics company Fractal Analytics.

The second fund has already invested in at least five start-ups.

The firm had exhausted its previous fund in mid-2015 and has since been warehousing its investments. Warehousing is a process that allows venture capital firms to invest in start-ups even when they have exhausted their funds or are yet to raise a new fund.

Bengaluru-based Nudgespot Technologies Pvt. Ltd raised $650,000 in a round led by Kae Capital.

Kae will invest the proceeds of the second fund in the next three-five years and plans to double the size of its investments. It has so far been investing a ticket size of $500,000 in early-stage start-ups, which will now be increased to $1 million. The follow-on ticket size also will be increased from $2.5 million to $4 million going forward.

At a point of time when most venture capital firms are looking at technology start-ups, Kae will be allocating 10% of the overall fund to cater to non-tech start-ups such as fast-moving consumer goods companies and manufacturing start-ups.

The fund will have an investment cycle of 10 years, which could be extended by two years, if required.

Kae, which invested in a few US-based start-ups in its previous fund, said the new fund will be completely dedicated to Indian start-ups.

Seed-stage deals nearly tripled in the first 10 months of 2015 from the previous year, according to VCCEdge, a data service by media firm VCCircle Network.

Until 20 October, there were 24 seed-stage investments worth $12.6 million, up from nine such deals worth $2.8 million in the same period the previous year.

Also read:

India: Digital tech firm Shopsense raises pre-Series A round from Kae Capital, others

India: Ratan Tata, University of California team up to fund startups over next 10 years

Exclusive: India-based childhood learning startup Magic Crate raises seed funding from Mohandas Pai, others

This story was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.