Glasgow Commonwealth Games champion shuttler Kashyap fought hard before going down 10-21 22-20 13-21 to former World No. 6 and third seed Qiao Bin of China in a contest that lasted an hour and 16 minutes at the Olympic Sports Center here.
Meanwhile, Dani lost 21-17 21-18 to another Chinese, Fleixiang Sun in 33 minutes.
The tournament was Kashyap's return to competitive badminton after recovering from a shoulder injury. He had suffered the injury during the Premier Badminton League (PBL) in January.