Venture capital firm Capital A has officially launched its second fund, targeting a corpus of ₹400 crore. This new fund is set to focus on a variety of
Venture capital firm Capital A has officially launched its second fund, targeting a corpus of ₹400 crore. This new fund is set to focus on a variety of sectors, including manufacturing, deeptech, climate technology, and fintech startups. With an eye towards backing innovative technologies and transformative business models, Capital A aims to play a significant role in shaping the future of these industries.
Capital A plans to invest in approximately 17 to 20 startups through this fund, allocating between $2 million to $3 million per deal over the lifecycle of each startup. The initial investment cheque is expected to range from $750,000 to $1 million. This strategic approach ensures that the firm can support startups at various stages of their growth, providing them with the necessary capital to scale effectively.
The fund will primarily draw from a domestic investor base, including family offices, high-net-worth individuals (HNIs), and prominent industry leaders. Some partners from Capital A’s previous fund, such as Manjushree Ventures, are also expected to contribute. The firm aims to close the fund by the end of 2025, thereby providing ample time to secure the necessary commitments.
Capital A is committed to a hands-on investment approach that combines operational expertise with strategic partnerships. The firm recognizes that financial backing is just one piece of the puzzle; it also emphasizes the importance of offering tactical support to its portfolio companies. By doing so, Capital A aims to foster long-term innovation and sustainability within its investments.
Ankit Kedia, Founder and Lead Investor of Capital A, highlights the immense potential within sectors like manufacturing and climate technology, which he believes are currently undervalued. “Many high-potential sectors, especially manufacturing businesses, are highly undervalued assets, with great potential to scale quickly and become significant contributors to the startup ecosystem,” Kedia stated.
Capital A has already made a mark with its first fund, supporting several successful startups such as Chargeup, Bambrew, Jiraaf, Leumas BharatSure, and Entuple. These investments span a diverse range of sectors, reflecting the firm’s broad focus on tech-enabled businesses. Since its inception in 2021, Capital A has invested in over 20 startups, including notable names like Rooter, Riskcovry, and Tan90.
The firm’s ability to identify and nurture promising startups has solidified its reputation as a key player in the venture capital landscape. The success of Fund I sets a solid foundation for the new fund, as it leverages lessons learned and relationships built in the startup ecosystem.
As the world increasingly turns its attention to sustainability and efficient production, sectors like manufacturing and climate technology are gaining traction. Capital A’s decision to focus on these areas aligns with global trends that emphasize the need for innovation in tackling climate change and improving operational efficiencies.
By investing in these sectors, Capital A not only aims to achieve financial returns but also contributes to broader societal goals. The firm recognizes the role that technology and innovation can play in driving sustainable practices and enhancing the quality of life.
The launch of Capital A’s ₹400 crore fund marks a significant step forward in its mission to support high-potential startups across critical sectors. With a robust investment strategy, a hands-on operational approach, and a focus on undervalued markets, Capital A is well-positioned to make a lasting impact in the startup ecosystem.
As the firm prepares to close its new fund by 2025, it looks forward to continuing its legacy of fostering innovation and driving growth in the manufacturing, deeptech, and climate sectors. Capital A’s strategic focus on these industries not only promises strong returns but also aligns with the pressing need for sustainable solutions in today’s world.
