Mumbai-based early stage investment firm Kae Capital has reportedly closed its second VC fund at $53 Mn, a 32.5% increase from the estimated $40 Mn. According to sources, around 40% of the fundraise has been contributed by international investors and institutional backers like Quilvest, Velos Partners, Axis Capital and Small Industries Development Bank of India (SIDBI).
Additionally, the fund has got backing from a cohort of entrepreneurs like MakeMyTrip founder Deep Kalra, BookMyShow’s Ashish Hemrajani, Quikr creator Pranay Chulet, Hero’s Sunil Munjal, Genesis Colors’ Sanjay Kapoor as well as Infosys co-founder Kris Gopalakrishnan.
As revealed by Kae Capital founder and Managing Director, Sasha Mirchandani, about 20% of the newly-raised fund will be used to back non-tech consumer brand startups, while the remaining amount will be utilised to invest in consumer Internet and software-based companies.
Commenting on the development, Mirchandani stated, “There is a huge untapped potential in the consumer space which is now playing out. There is far less competition, lots of good entrepreneurs are coming out in this space and you can build a profitable business with requiring the kind of capital consumer internet businesses do.”
Kae Capital is an early stage investment firm that primarily backs tech startups in a variety of domains, such as ecommerce, education, consumer Internet, healthcare, and mobile. Its first VC fund was launched in September 2012 and had a corpus of $25 Mn. The venture capital firm also provides Seed funding to up-and-coming startups.
At present, Kae makes around seven to eight Seed stage investments every year worth $700K-$800K. The second VC fund, according to Mirchandani, was created to make larger investments to the tune of $5 Mn in Series A and Series B stage startups.