Capital A has launched a Rs 400 crore fund to invest in manufacturing and climate startups in India. The venture capital firm plans to support 17-20 high-potential companies through this initiative. Ankit Kedia, Founder and Lead Investor at Capital A, believes that many manufacturing businesses are undervalued assets with great potential for growth.
He states, “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.”
The fund, named Fund II, will provide initial investments ranging from $750,000 to $1 million per company. Over the lifecycle of each selected startup, Capital A plans to commit a total of $2-3 million. In addition to manufacturing, the fund will also focus on sectors such as climate, deep tech, and fintech.
capital A backs high-potential startups
Kedia emphasizes, “Other areas of interest include sectors like climate, deep tech, and fintech, which continue to be a thesis from our previous fund.”
Capital A’s first fund successfully supported and scaled startups like Chargeup and Entuple. With Fund II, the firm aims to replicate and expand on this success, contributing to India’s growing startup ecosystem.
The launch of this fund comes at a time when the climate equity landscape in India is experiencing rapid growth. There has been a surge in investor participation and the emergence of new climate-focused funds, reflecting a growing awareness of sustainability and the opportunities in the climate tech sector. As Capital A embarks on this new venture, they are committed to backing visionary entrepreneurs and fostering innovation.
Through strategic investments and operational support, the firm aims to play a key role in shaping India’s startup ecosystem and driving sustainable economic growth.
