Capital A Launches Second Fund with Rs 400 Crore Corpus, Eyes High-Growth Startups

New Delhi, Sep 21 (KNN) Venture capital firm Capital A has announced the launch of its second fund, Fund II, with a corpus of Rs 400 crore aimed at fuelling the growth of startups in high-potential sectors like manufacturing, climate tech, fintech, and deep-tech. 

According to a company statement, the fund will focus on identifying innovative technologies and business models poised to reshape industries and drive sustainability.

Fund II is expected to invest in 17–20 companies, providing initial capital injections of USD 750,000 to USD 1 million, with total commitments per company ranging between USD 2–3 million over their growth cycles. 

Capital A’s investor base for this fund is largely domestic, with backing from family offices, high-net-worth individuals (HNIs), and industry leaders. 

Manjushree Ventures, a significant backer from the firm’s first fund, is among the returning investors, signaling continued confidence in Capital A’s investment strategy.

Ankit Kedia, founder and lead investor at Capital A, highlighted the immense growth potential in underfunded sectors. “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,” Kedia said. 

He added that climate, deep-tech, and fintech remain key areas of focus, in line with the firm’s earlier initiatives.

The launch of Fund II comes at a time when climate tech investment in India is gaining momentum. Since 2020, over 475 investors have engaged in climate tech funding, with a notable uptick in activity over the past year. 

In 2023 alone, 124 funds made their first investments in climate solutions, reflecting a 25% increase in participation. While the overall growth in funding has been moderate, this rise in investor interest underscores a growing commitment to addressing climate challenges.

Founded in 2021, Capital A’s first fund achieved success through investments in companies such as Chargeup, Bambrew, Jiraaf, BharatSure, and Entuple. 

With Fund II, the firm aims to continue its legacy of advancing technologies that tackle critical global issues while delivering long-term returns to its investors. The fund is expected to reach its final close by the end of 2025.

(KNN Bureau)