Kettleborough VC launches Rs 80 crore Fund II to back inception-stage startups

Kettleborough VC, led by Nisarg Shah, has launched its second fund with a target of Rs 80 crore. The firm announced its first close at Rs 35 crore, drawing support from family offices and entrepreneurs in India and the US. This follows the success of Fund I, which backed 12 startups and provided the first institutional cheque to nine of them.

Kettleborough VC focuses on inception-stage startups, particularly those led by founders with over a decade of domain expertise. The firm prefers 'Dhandha-first' businesses in financial services, full-stack commerce, and vertical SaaS, though it remains sector-agnostic. Shah advocates for a high-conviction, low-velocity approach, aiming to back around 10 companies with Fund II.

Fund II will write initial seed cheques ranging from $300,000 to $500,000 (Rs 2.5 crore to Rs 4.2 crore). It will also allocate follow-on capital to support portfolio growth. As of February 2026, the firm has invested in 28 startups across both funds, with 18 from Fund I and 10 from Fund II.

Several of these startups have since secured follow-on funding from prominent institutional investors. The firm expects to fully deploy Fund I this quarter and has begun preparing for its first exits. Kettleborough's strategy centres on backing founders at what Shah calls 'the last straw moment'—when lived experience, market knowledge, and network depth align.

The launch of Fund II marks another step in Kettleborough VC's growth. With a focus on experienced founders and meaningful follow-on support, the firm aims to expand its portfolio. The first close of Rs 35 crore sets the stage for further investments in early-stage startups.