Kae Capital’s debut fund delivers 3.6x returns; Porter, HealthKart drive gains

Early-stage venture capital firm Kae Capital has fully exited its first India fund with a 3.6x return on capital, led by portfolio companies Porter and HealthKart, the firm said on November 11.

The two startups have together returned the fund multiple times over through recent secondary transactions.

Which companies drove the returns?

Intra-city logistics platform Porter, which connects businesses and individuals with on-demand mini-truck and two-wheeler delivery services, delivered over twice the fund’s corpus, while health and nutrition retailer HealthKart, which sells supplements and wellness products through its online platform and stores, returned the fund once on its own, with additional unrealised value still in play.

The exits make Kae’s maiden vehicle, launched in 2012, one of the strongest-performing early-stage funds of its vintage. The fund’s overseas vehicle is on track to deliver over 5x returns, putting combined performance among the highest for any homegrown seed-stage investor.

What did Kae’s first fund back?

Kae Capital’s first fund backed 32 startups across India and the US, including online pharmacy Tata 1MG, retail tech platform Fynd, compliance and risk software firm Certa, social media analytics startup Airwoot, and event management tool Eventifier.

The portfolio attracted over $900 million in follow-on capital and created about $2.7 billion in enterprise value, according to the firm. Several of these investments have since evolved into category leaders or were acquired by larger players — 1MG, for instance, is now part of Tata Digital, while Fynd has expanded its presence in omnichannel retail software.

“When we raised Fund I, seed investing in India was still nascent. To now deliver a top-tier return on that first fund is deeply gratifying,” said Sasha Mirchandani, founding partner at Kae Capital.

What is Kae investing in now?

Following Fund I, Kae raised two more funds, backing companies such as Zetwerk (manufacturing services platform), Nazara Technologies (listed gaming company), and Snapmint (buy-now-pay-later fintech). Its third fund includes newer names like Traya (hair and wellness brand), Foxtale (skincare startup), and RecommerceX (reverse logistics and recommerce platform).

Across its three funds, Kae has backed three unicorns and five companies that have each crossed $100 million in annual revenue. Its overall portfolio spans over 90 startups and has generated about $7.7 billion in cumulative enterprise value.

“Kae’s first fund performance shows what’s possible when early bets compound over time,” said Gaurav Chaturvedi, partner at the firm.

What’s next for the firm?

Kae Capital, which manages over $250 million in assets, said it is now focusing on emerging areas such as artificial intelligence, automation, manufacturing technology, and deeptech as it looks to back the next wave of high-growth startups from India.