Bengaluru, July 16, 2025 – Kettleborough VC, a Bengaluru-based venture capital firm, has announced the launch of its second fund, targeting a corpus of INR 80 crore. The firm has already secured INR 35 crore in its first close, with commitments from prominent family offices, high-net-worth individuals (HNIs), and repeat investors from its first fund. This milestone underscores Kettleborough VC’s growing influence in India’s startup ecosystem, particularly in early-stage investments across technology-driven sectors like healthtech, fintech, and deep-tech.
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Building on a Strong Foundation
Founded in 2021 by Ritesh Shah and Priya Venkat, Kettleborough VC has quickly established itself as a key player in India’s venture capital landscape. Its first fund, a INR 50 crore vehicle launched in 2022, backed 12 early-stage startups, including healthtech platform HealthifyMe and agritech startup FarmGuru. With a focus on pre-seed and seed-stage ventures, the firm has built a reputation for hands-on mentorship and strategic guidance, helping portfolio companies achieve significant milestones.
The second fund aims to continue this legacy, targeting 15-20 investments over the next three years. “Our mission is to empower visionary founders solving real-world problems with scalable technology,” said Shah. “The INR 80 crore corpus will enable us to back bold ideas in emerging sectors while fostering sustainable growth.” The first close of INR 35 crore, announced on July 16, 2025, reflects strong investor confidence in Kettleborough’s investment thesis.
Strategic Investment Focus
Kettleborough VC’s second fund will prioritize startups in healthtech, fintech, agritech, and deep-tech, with a special emphasis on artificial intelligence (AI) and sustainability. The firm plans to allocate 40% of the fund to healthtech and fintech, sectors that have seen robust growth in India. For instance, India’s digital healthcare market is projected to reach $37 billion by 2030, while fintech funding hit $2.1 billion in 2024, according to Tracxn. Deep-tech, including robotics and AI, is another focus area, driven by government initiatives like the Rs 1 lakh crore Research Development and Innovation (RDI) scheme, which allocates Rs 20,000 crore for FY26.
The fund will also explore opportunities in tier-2 and tier-3 cities, where access to early-stage capital remains limited. “We see immense potential in founders from smaller cities who are addressing local challenges with innovative solutions,” said Venkat. Kettleborough’s average ticket size will range from INR 2-5 crore, with follow-on investments reserved for high-performing portfolio companies.
Leveraging a Robust Network
Kettleborough VC’s success stems from its extensive network of industry experts, mentors, and corporate partners. The firm has collaborated with organizations like NASSCOM and IIM Bangalore’s NSRCEL to provide startups with market access, technical expertise, and go-to-market strategies. Its portfolio companies have benefited from partnerships with global players, such as HealthifyMe’s tie-up with Fitbit for wearable integration.
The firm’s investor base for Fund II includes repeat backers from Fund I, alongside new HNIs and family offices from Bengaluru, Mumbai, and Dubai. “Our investors trust our ability to identify high-potential startups and deliver outsized returns,” said Shah. Kettleborough’s first fund achieved a 3x return on select exits, boosting its credibility among limited partners (LPs).
Navigating a Challenging Funding Landscape
India’s startup ecosystem raised $6 billion in H1 2025, a 20% increase from H1 2024, but early-stage funding remains constrained due to global macroeconomic headwinds. Rising interest rates and valuation corrections have made investors cautious, with 60% of deals in H1 2025 focused on early-stage ventures, per Tracxn. Kettleborough VC’s ability to secure INR 35 crore in its first close highlights its strong track record and investor trust.
However, challenges persist. Regulatory complexities, particularly in fintech and healthtech, require startups to navigate stringent guidelines from the RBI and CDSCO. Kettleborough addresses these by providing portfolio companies with compliance support and access to legal experts. “Our role goes beyond capital; we help founders overcome operational and regulatory hurdles,” said Venkat.
Impact on India’s Ecosystem
Kettleborough VC’s second fund is set to significantly influence India’s startup landscape. By targeting underserved sectors and regions, the firm promotes inclusive growth. Its investment in FarmGuru, for instance, has equipped over 10,000 farmers in Maharashtra with precision farming tools, increasing yields by 25%. Support for healthtech startups aligns with India’s Ayushman Bharat Digital Mission, advancing digital healthcare access.
With a focus on AI and deep-tech, Kettleborough is tapping into India’s expanding talent pool. The country’s 1,200+ universities and surge in AI graduates are fueling a new wave of founders, and the firm’s mentorship-driven approach helps them scale globally.
Competitive Edge and Future Outlook
Competing with the likes of Blume Ventures and Accel India, Kettleborough stands out with its focus on early-stage startups and tier-2 cities. Its hands-on model—including monthly strategy sessions and a network of 50+ mentors—has led to an 80% follow-on funding success rate.
The firm aims to close Fund II by Q1 2026 with an additional INR 45 crore. It also plans to explore co-investment opportunities with global VCs to support portfolio companies in going international.
Driving Economic and Social Impact
Kettleborough VC seeks more than just financial returns. Its investments in healthtech and agritech address vital issues like healthcare access and food security. HealthifyMe’s AI-driven wellness platform, for example, has reached 2 million users. The firm also supports rural skill development initiatives, aligning with the Atmanirbhar Bharat mission.
With India’s startup funding projected to surpass $10 billion in 2025, Kettleborough VC is poised to play a key role in shaping the ecosystem by backing innovative, impact-driven founders.
A Catalyst for Change
Kettleborough VC’s INR 80 crore second fund marks a major step in its mission to empower the next generation of Indian entrepreneurs. With a strong focus on healthtech, fintech, and deep-tech, the firm is driving meaningful change and helping position India as a global innovation hub.
also read: Dial4242 Secures Rs 9 Crore in Pre-Series A Funding to Revolutionize Ambulance Services in India
Last Updated on Wednesday, July 16, 2025 9:43 am by Swayam Sharma
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