Early-stage venture capital firm Kae Capital, which has backed startups such as Porter, 1mg, Healthkart and Zetwerk, among others, is looking to invest in AI-native enterprise software, vertical AI applications, and intelligent systems that are transforming how businesses operate and make decisions. The investments will be made from its $90 million Fund 3, which has so far deployed $63.16 million. In 2026 so far, the firm has made four new investments and another four are in the making. Last year, it made 8 new investments from its Fund 3.
The sector-agnostic firm is also working on areas such as advanced manufacturing, supply-chain infrastructure, aerospace and defence technologies, cybersecurity, and energy transition, where geopolitical shifts and policy support are creating new venture opportunities. “While these themes anchor our current focus, we continue to evaluate opportunities in consumer tech, fintech, and other high-potential sectors where strong founders are building large, scalable businesses,” Sunitha Viswanathan, partner, Kae Capital, told FE.
Balancing D2C Desires
Kae Capital is also evaluating opportunities in the direct-to-consumer (D2C) brands, but with caution. “There are some segments in D2C that we continue to be excited about, given India is still a brand-starved country,” Viswanathan said. Kae Capital’s D2C portfolio so far includes Nua, Traya and Foxtale. “We have also started seeing strategic acquisitions in the D2C ecosystem. We will need to see more of this even for B2B opportunities, especially in the sub $250 million exits. This will create more liquidity and also lower the burden of only investing in >$1 billion opportunities,” Viswanathan said.
Seed-Stage Blueprints
Founded in 2012, Kae Capital typically invests at the seed stage with an initial cheque size of approximately $1–2.5 million, while reserving additional capital for follow-on rounds to support its strongest portfolio companies as they scale. Some of its recent investments include Enerzolve, PowerUp, SuperLiving, and Cartesian Kinetics. “These companies reflect our continued focus on sectors such as AI-led innovation, energy transition, fintech and technology-enabled industrial platforms,” Viswanathan added.
The firm is optimistic about the shift toward AI-native innovation, where startups are building products with AI at the core rather than treating it as an add-on. This, the firm believes, is creating new opportunities across enterprise software, automation, and vertical AI applications, and it expects this wave to drive the next generation of technology companies. Another favourable trend is the growing depth of India’s startup ecosystem, supported by strong digital infrastructure, a large developer base, and increasing global investor participation. “This has also led to improving exit pathways through IPOs and strategic acquisitions, which is important for long-term capital formation in venture,” Viswanathan added.