Venture capital firm Kae Capital has begun preparations to raise its fourth fund, with a target size of around $100-110 million, according to people familiar with the development. The firm is expected to continue its sharp focus on early-stage investing, with nearly 80-85% of the new fund earmarked for seed and Series A rounds.
The proposed fund marks a continuation of Kae Capital’s long-standing strategy of backing companies at the earliest stages and building conviction-led portfolios rather than chasing late-stage momentum. The fund size is expected to remain broadly in line with its previous vehicle, reflecting a calibrated approach to capital deployment amid a steadily improving venture funding environment.
Sector focus remains consistent
Kae Capital plans to invest across a familiar set of sectors, including consumer businesses, fintech, deeptech, and B2B and B2C companies working in artificial intelligence and intelligent automation. In addition, the firm is looking at opportunities in cybersecurity, defence, and aerospace, with an emphasis on founders building self-reliant, India-first companies.
This thematic continuity signals the firm’s intent to deepen its exposure to areas where it has already built operational understanding and founder networks, rather than broadening its mandate purely for diversification.
A look at Kae Capital’s fund history
Founded in 2012, Kae Capital has raised three main funds so far. Its first fund was approximately $25 million, followed by a $53 million fund in 2016. The third fund, raised in 2022, stood at around $95-100 million.
Beyond these core funds, the firm has also raised two separate winners’ funds, together totalling roughly $60-80 million, aimed at backing high-performing portfolio companies at later stages.
Portfolio and outcomes
Over the years, Kae Capital has backed a range of startups including Zetwerk, Nazara Technologies, Snapmint, Traya, Foxtale, and RecommerceX. The firm has also reported strong outcomes from several earlier bets, with companies such as Porter and Healthkart delivering outsized returns.
The move to raise Fund IV comes at a time when venture capital activity in India is showing renewed traction. Several early and growth-stage funds have recently raised fresh capital, indicating rising investor confidence after a period of slowdown.
Kae Capital has not publicly commented on the fundraise, and discussions are understood to be at an early stage. However, the direction is clear: the firm is doubling down on its early-stage roots, betting that disciplined entry, founder-first partnerships, and sectoral depth will continue to define its next phase of growth.
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