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

Venture capital firm Capital A has launched its second fund, targeting a corpus of Rs 400 crore. This fund will be  focused on backing sectors such as manufacturing, deeptech, climate and fintech startups. 

Fund II aims to identify innovative technologies and business models set to shape the future, Capital A said in a press release.

Capital A says that its  Fund I has supported and scaled many progressive startups including Chargeup, Bambrew, Jiraaf Leumas BharatSure and Entuple. The firm aims to have a strategy of combining operational expertise, strategic partnerships, and financial backing to foster sustained innovation.

According to Capital A, it intends to invest in 17-20 companies and will cut cheques of $2-3 million over the lifecycle of the startup, with the first cheque ranging from $750K- $1 million. 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. The firm aims to mark the final close of the fund by the end of 2025.

Capital A aims to have an operational immersive role and provides tactical and long-term value for its portfolio companies and makes meaningful contributions to the broader ecosystem. As the firm embarks on the next phase with Fund II, it aims  to support visionary entrepreneurs and advancing technologies that address some of the world’s most urgent challenges. 

Launched in 2021 by Ankit Kedia, Capital A backs  startups across diverse sectors such as climate, deeptech, fintech and other tech-enabled businesses. It has invested in more than 20 startups, including  Jiraaf, Rooter, Bambrew, Riskcovry, and Tan90 amongst others.