Good Capital Plans To Invest $25 Mn In AI Startups

Good Capital, an early-stage venture investment firm, plans to invest USD 25 million in AI startups by FY25 (Financial year 2024-2025). These investments will primarily target sectors such as Cleantech, Ecommerce, Edtech, Healthtech, SaaS and Deeptech. This comes at a time when India’s AI market is projected to reach a whopping USD 17 billion by 2027. 
 
The firm plans to invest in 15-20 AI startups across early-stage and Series-A funding stages, utilising AI and LLM models to create novel businesses through an investment strategy that backs startups empowering intermediaries rather than the global trend of “disruption.” Currently, 80 per cent of Good Capital's pipeline consists of companies leveraging AI across various industries, it said in a statement.

Good Capital holds the belief that recent advancements in AI present opportunities to bridge skill gaps. This enables intermediaries to focus on high-touch execution, while AI automates complex planning tasks. Essentially, AI acts as a catalyst, enhancing the capabilities of intermediaries by managing tasks beyond their core competencies. This shift allows intermediaries to concentrate more deeply on their core strengths. Good Capital's portfolio companies like Cloudchef, Definitive, Propacity and MyGenie follow this approach by leveraging AI to streamline processes.
 
Good Capital General Partner Arjun Malhotra said, "At Good Capital, we are committed to leveraging the inherent potential of India's unique structure as a small-business economy. We focus on investing in startups that leverage the expertise of local intermediaries to offer services & products with low acquisition costs and high conversion rates."
 
Good Capital manages a portfolio comprising over 25 startups, including unicorns such as Meesho, LEAD, Entri and Solar Square, among others.