Capital A launches Rs 400 crore fund to invest in manufacturing, climate startups

Venture capital firm Capital A has announced the launch of its second fund, with a target corpus of Rs 400 crore.

The fund will focus on sectors such as manufacturing, deeptech, climate, and fintech startups.

The new fund aims to back innovative technologies and business models that will shape the future.

Investment Strategy and Goals

Capital A plans to invest in 17-20 startups through this fund, with each deal amounting to $2-3 million over the lifecycle of a startup. The first investment cheque is expected to range from $750,000 to $1 million.

Fund II will have a primarily domestic investor base, backed by family offices, high-net-worth individuals (HNIs), and industry leaders. Partners from its previous fund, like Manjushree Ventures, will also contribute to this fund. The firm aims to close the fund by the end of 2025.

Operational approach and portfolio focus

Capital A emphasizes a hands-on approach in its investments, blending operational expertise and strategic partnerships. The firm is committed to fostering long-term innovation by providing not only financial backing but also tactical support to its portfolio companies.

Ankit Kedia, Founder and Lead Investor of Capital A, believes that sectors such as manufacturing, deeptech, and climate are currently undervalued but have immense potential to grow quickly and contribute significantly to the startup ecosystem.

"Many high-potential sectors, especially manufacturing businesses, are highly undervalued assets, with great potential to scale quickly and become an important contributor in the startup ecosystem,” Kedia said.

Previous investments and Fund I success

Capital A's first fund has already supported several startups, including Chargeup, Bambrew, Jiraaf, Leumas BharatSure, and Entuple. These startups are spread across a diverse range of sectors, reflecting the company’s broad focus on tech-enabled businesses.

The firm, which was launched in 2021, has so far invested in more than 20 startups, including notable names like Rooter, Riskcovry, and Tan90.