Kae Capital raises $30M second fund, backs five startups

Early-stage investor Kae Capital has raised $30 million (Rs 203 crore) from existing and new investors as part of its second fund to invest in Indian startups.

The development was reported by the Mint citing its founder and managing director Sasha Mirchandani.

Mirchandani didn't respond to phone calls seeking comment.

The firm is likely to raise an additional $10 million soon, he said in the report but didn't name the investors.

Kae Capital raised its maiden $25 million fund in March 2012. The fund's past investors include venture capital firms Sequoia Capital, SAIF Partners and Omidyar Network; three global fund-of-funds—Axiom, Squadron Capital and Morgan Creek Capital Management; and Manish Kejriwal, managing partner at 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 startups. These include fashion portal Myntra, which was 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 startups, the Mint report said. Bengaluru-based Nudgespot Technologies Pvt Ltd raised $650,000 in a round led by Kae Capital.

Kae Capital has been investing $500,000 in early-stage startups, which is likely to increase. It will allocate 10 per cent of the second fund to cater to non-tech startups such as consumer goods companies and manufacturing startups. The fund will have an investment cycle of 10 years, which could be extended by two years, the report said.