Capital A, a venture capital firm, has introduced its second fund, targeting a corpus of Rs. 400Cr. This fund is focused on backing high-potential sectors such as manufacturing, deeptech, climate and fintech startups. Fund II aims to identify innovative technologies and business models set to shape the future.
With plans to invest in 17-20 companies, Capital-A will cut cheques of USD 2-3 million over the lifecycle of the startup, with the first cheque ranging from $750K- $1 million. This further demonstrates the firm’s commitment to supporting enterprises that are positioned to redefine industries and drive sustainability.
The investor base for Fund II will be primarily domestic, with backing from family offices, industry leaders, HNIs and likeminded LPs and returning partners from previous funds, like Manjushree Ventures. Capital A aims to mark the final close of the fund by the end of 2025.
“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. Other areas of interest include sectors like climate, deeptech and fintech which continue to be a thesis from our previous fund. We will continue to dive deeper into the sectors and increase our breadth in the other subsectors. Through Fund II, we aim to bridge this gap by focusing on long-term value creation in these segments,” said Ankit Kedia, Founder and Lead Investor, Capital A. “Our promoter-led experience gives us a distinct advantage in identifying and nurturing opportunities in areas like green tech and fintech.”
Fund I demonstrated Capital A’s ability to support and scale many progressive startups, with successes including Chargeup, Bambrew, Jiraaf Leumas BharatSure and Entuple, which have achieved significant milestones and uprounds. It showcases their strategy of combining operational expertise, strategic partnerships, and financial backing to foster sustained innovation.
The climate equity landscape in India is expanding as the sector becomes more mainstream. Since 2020, 475 investors have participated in funding climate enterprises, with over half of them active in 2023 alone. Last year saw a 25% increase in climate investors compared to 2022, with 124 funds making their first-ever investments in the space. Although overall funding growth has remained minimal, the surge in investor participation and the emergence of new climate-focused funds signal a positive outlook. Additionally, the roles of various investors are becoming more defined and interconnected across different stages of funding.
By adopting an operational immersive role, Capital A has unlocked both tactical and long-term value for its portfolio companies and made meaningful contributions to the broader ecosystem. As the firm embarks on the next phase with Fund II, it remains committed to supporting visionary entrepreneurs and advancing technologies that address some of the world’s most urgent challenges.
