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Capital A Launches Rs 400 Crore Fund to Target Manufacturing, Climate Startups

• ByStartupStory     |    September 21, 2024

Venture capital firm Capital A has announced the launch of its second fund with a corpus of Rs 400 crore, aimed at supporting startups in high-growth sectors like manufacturing, climate, fintech, and deep-tech. This fund, which follows the success of Capital A’s previous investments, is expected to fuel innovative technologies and business models that can reshape industries and drive sustainability, according to a company statement.

Fund II plans to invest in 17–20 companies, with initial investments ranging between $750,000 and $1 million. Over their growth cycles, these companies can expect total commitments of $2–3 million per company. Capital A’s new fund will have a largely domestic investor base, including family offices, high-net-worth individuals (HNIs), and industry leaders. Among the returning investors is Manjushree Ventures, a key backer from Capital A’s first fund.

“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,” said Ankit Kedia, founder and lead investor at Capital A. “Other areas of interest include sectors like climate, deep-tech, and fintech, which continue to be a focus from our previous fund.”

The launch of Fund II is timely, as India’s climate tech investment landscape gains momentum. Since 2020, over 475 investors have engaged in climate tech funding, with more than half becoming active in 2023. Last year, there was a 25% increase in climate investors, with 124 funds making their first investments in the sector. While overall funding growth has been moderate, increased investor participation highlights a growing commitment to climate solutions, according to the press release.

Capital A was established in 2021 and has successfully backed startups like Chargeup, Bambrew, Jiraaf, BharatSure, and Entuple. The second fund aims to continue this momentum by supporting technologies that address critical global challenges while generating long-term returns for its investors.

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