NewsOct 26, 2026, 16:18 UTC

Kae Capital's $25M maiden fund returns 5x as Porter, HealthKart cash out

What's the deal? Kae Capital said its first fund — a $25 million early-stage vehicle launched in 2012 — has returned several times its original capital, driven largely by Indian startups Porter and HealthKart. Porter alone returned more than twice the fund's size, while HealthKart returned an amount equal to the entire fund.

Why now? Recent secondary transactions lifted the returns. A 2025 round valued logistics firm Porter at about $1.2 billion, and an extension reportedly let existing investors, including Kae, sell shares — turning paper gains into cash rather than waiting for an IPO.

The numbers: Fund I backed 32 companies across India and the US through two vehicles. The India vehicle has fully exited at 3.6x DPI — distributions to paid-in capital — as of September 2023, while the overseas vehicle is on track to pass 5x, according to Kae.

Founding partner Sasha Mirchandani called the result "top decile," noting that seed investing was nearly unheard of in India when the fund was raised.

What's the endgame? The Mumbai-based firm has since launched two more funds. Fund II backed manufacturing platform Zetwerk and listed gaming firm Nazara; Fund III, launched in 2022, includes Traya and Foxtale. Across all three funds, Kae says it has backed 90 startups and three unicorns, with a combined portfolio enterprise value of $7.7 billion.

The signal: The outcome stands out against a tougher, more selective startup-funding environment. But it is a long-vintage result — a 13-year hold — not proof that early-stage Indian venture returns are broadly recovering.