Kettleborough VC Bets Big on India’s Early-Stage Startups With Second Fund

In a market where many investors are holding their purse strings tighter, some contrarian voices are betting big on India’s early-stage potential — and leading that charge is Nisarg Shah, the solo force behind Kettleborough VC.

The venture capital firm, known for its sharp early-stage focus, has just launched its Second Fund with a target corpus of ₹80 crore. Marking a significant milestone, the firm also announced the first close at ₹35 crore, with backing from undisclosed domestic and US-based investors and family offices.

This development not only signals investor confidence in Kettleborough’s thesis but also highlights the growing interest in backing startups right at the ground floor — when conviction matters more than valuation.

What’s the Play? A Sectoral Bet on the Future

The fund has made its focus clear: it aims to invest in fintech, vertical SaaS, agentic AI-led platforms, and full-stack commerce solutions.

Kettleborough’s Fund II will offer startups initial cheques of $300K-$500K, giving early builders the critical capital they need to scale their MVPs, secure key hires, or break into the market with confidence.

This follows the success of Fund I, which closed at $5 million in 2022, backing startups like Zippmat, InPrime, Finhaat, Elivaas, Sumosave, and Gravity. That fund is now nearing its full deployment, with undisclosed exits expected over the coming months, indicating a healthy return profile.

“Fund I has shown a clear PMF (Product-Market Fit) for this thesis—tracking nearly 2x in just about 3 years from the final close—and we are now doubling down with Fund II to back about 10 more such companies,” Shah shared.

Who is Backing This Vision? A Solo GP with a Solid Track Record

Kettleborough is not your typical VC firm. Launched in late 2021 as a Solo General Partner (GP) fund, it has managed to carve a distinct identity in India’s hyper-competitive VC ecosystem.

Nisarg Shah himself brings more than just capital to the table. From his pre-fund investing days, he’s been an early believer in ventures like Homeville, Foxtale, and Onebanc.

To date, the firm claims to have invested in 30+ startups and participated in around 80 follow-on rounds, making Kettleborough one of the more active names in the early-stage VC circuit — especially for a solo-led fund.

A Larger Trend: The Early-Stage Gold Rush in India

Kettleborough isn’t alone in chasing India’s early-stage dream. Across the board, investors are rushing to get in early — when risks are high but so is the reward.

• Prime Venture Partners, for instance, announced its fifth fund at $100 million, with a clear eye on early-stage deals in fintech, AI, and SaaS.

• 360 ONE Asset launched an ₹500 Cr fund (~$60 Mn), targeting everything from consumer tech to spacetech and defence.

• Even academic institutions are entering the game — IIT Madras is setting up a ₹200 Cr deeptech fund to back innovation emerging from the labs.

According to recent media reports, Indian seed-stage startups raised $406 million in the first half of 2025, showing that despite global macroeconomic jitters, India remains fertile ground for new ideas.

What This Means for the Indian Startup Ecosystem

The renewed momentum at the early stage, especially from focused funds like Kettleborough, is crucial. These are the bets that often go unnoticed but have the potential to shape the next decade of Indian innovation.

By backing startups not just with capital, but with operational knowledge and high-conviction belief, firms like Kettleborough are becoming the backbone of India’s startup ecosystem. Their Fund II launch signals a maturing yet optimistic VC landscape that continues to invest in the idea of “Bharat builds for the world.”

As exits roll in from Fund I and a new cohort emerges under Fund II, all eyes will be on the names that will rise from the Kettleborough portfolio — and whether they become the next breakout Indian startup stories.