In a remarkable demonstration of early-stage investment success, Kae Capital has announced that its maiden $25 million fund has delivered exceptional returns, generating over a 5x multiple on invested capital across its India and international investment vehicles. This outstanding performance comes after a series of recent secondary transactions involving two of its earliest portfolio companies—Porter and HealthKart.
Impressive Fund Performance Metrics
The venture capital firm revealed that its India vehicle has completely exited with a distribution to paid-in capital (DPI) of 3.6x as of September 2023, while the overseas vehicle is positioned to deliver returns exceeding 5x. DPI serves as a crucial performance indicator for venture funds, measuring the actual cash returned to investors compared to their original financial commitments.
Sasha Mirchandani, founding partner at Kae Capital, reflected on the fund's journey, stating: "When we raised Fund I, seed investing in India was almost unheard of. Our goal was simple—back extraordinary founders at their earliest stages and stand with them across cycles."
Strategic Exits and Portfolio Strength
Kae Capital's first fund, launched in 2012, demonstrated remarkable foresight by backing 32 companies across India and the United States. The fund's India vehicle concluded its operations in 2023, while the global vehicle has been extended for additional years to maximize returns.
The investment firm's success story is particularly highlighted by its strategic exits from Porter and HealthKart. Porter alone returned more than twice the fund's total value, while HealthKart single-handedly returned the entire fund amount. Notably, Kae Capital continues to maintain stakes in both companies, suggesting further potential upside.
Gaurav Chaturvedi, general partner at Kae Capital, emphasized the significance of these achievements: "Fund I's DPI is not just a number, it's a symbol of what's possible when early conviction meets enduring partnership. We are proud to have played a role in shaping some of India's most exciting companies."
Building on Early Success
Kae Capital's initial fund performance arrives at a critical juncture when limited partners are increasingly scrutinizing the track records of fund managers before committing additional capital. This trend has prompted numerous investment firms in India to consider cashing out some investments to return capital to their investors.
The firm's portfolio included several other notable successes beyond Porter and HealthKart, including 1MG and Certa, along with high-multiple exits from Dailyround, Fynd, Airwoot, and Eventifier. The fund's overall performance received a significant boost from $900 million in follow-on capital flowing into its portfolio companies, driving a combined enterprise value exceeding $2.7 billion.
Building on this momentum, Kae Capital has subsequently launched larger funds of $50 million and $100 million respectively. The second fund has already returned its secured amount, with investments in prominent companies like Zetwerk, Nazara, and Snapmint, while achieving successful exits from Halaplay, Fynd, and Numberz. The third fund is showing strong performance from investments in emerging companies such as Traya, Foxtale, and RecommerceX.
Across its three funds, Kae Capital has backed three unicorn companies, with early investments contributing to $7.7 billion in cumulative enterprise value and attracting over $2 billion in follow-on capital. The firm's initial investment size has grown from $500,000 to between $1-1.5 million, reflecting increased confidence and scaling operations.
Currently managing over $250 million across 90 startups, Kae Capital maintains a sector-agnostic approach while focusing sharply on seed-stage opportunities in artificial intelligence, intelligent automation, manufacturing resilience, and deeptech—positioning itself at the forefront of India's evolving startup landscape.
