Venture capital firm KEA Capital closes second fund at ₹340 crore

Kae Capital, a Mumbai-based early-stage venture capital firm, has made a final close to its second fund at around ₹340 crore ($53 million). The VC firm was aiming to raise around ₹320 crore for the second fund.

Sasha Mirchandani, founder and managing director of the VC firm, said,

It has exceeded (our initial target) but we’re happy to take that money. We had earlier planned to draw the line at $50 million, but we got a lot of interest, so we finally closed it at $53 million.

The venture capital firm started the process of raising money for its second fund last year. In March 2016, it managed to raise around ₹192 crore ($30 million) from its existing investor.

The investors who poured-in money in the second fund include Small Industries Development Bank of India (SIDBI), Quilvest, a few Chinese and Japanese limited partners, few large global and domestic family offices, Tekton Ventures and Axis Capital.

It has also received investment from some of the prominent angel investors such as Deep Kalra of MakeMyTrip, former Infosys co-founder Kris Gopalakrishnan, Nitish Mittersain of Nazara, Sanjay Kapoor of Genesis Color, Pranay Chulet of Quikr, Jitendra Gupta of Citrus Pay, Ashish Hemrajani of BookMyShow and Sunil Munjal of Hero Group, among others.

From its maiden fund of around $25 million, which it raised in 2012, Kae Capital invested in around 25 startups, including HealthKart, Hello English, Porter and SysCloud.

The VC firm has already invested in over 10 startups with its second fund. The startup which received funding are those in which Kae Capital came in as the first institutional investor.

Kae Capital is now planning to double the size of its investments in early-stage startups from the current $500,000 to $1 million. The follow-on investment size in Series A and B rounds also will increase.

The venture capital firm says that it is now looking at three types of companies — B2C technology, B2B tech, either within India or globally, and B2C non-tech.