Capital A has launched a Rs 400 crore fund for manufacturing and climate startups. The fund, named Fund II, will support 17-20 companies with initial investments ranging from $750,000 to $1 million. The total commitment per company will be $2-3 million over their growth cycles.
Ankit Kedia, Founder and Lead Investor at Capital A, said, “Many high-potential sectors, especially manufacturing businesses, are highly undervalued assets with great potential to scale quickly and become important contributors to the startup ecosystem. Our second fund aims to unlock this potential, propelling manufacturing startups to the forefront of India’s economic growth.
Capital A also plans to focus on climate tech and deeptech innovations. Kedia highlighted that climate and fintech sectors have been part of their focus since their first fund.
This commitment aligns with India’s goals for a greener and more technologically advanced future. The investor base for Fund II will be primarily domestic, with contributions from family offices, industry leaders, high-net-worth individuals, and returning partners such as Manjushree Ventures.
Manufacturing and climate investment initiative
Capital A aims to close the fund by the end of 2025. The launch of Fund II comes at a time when venture capital investment in Indian startups is experiencing significant growth. GlobalData said VC funding for Indian startups surged by 42% to $6.3 billion between January and July this year.
Capital A’s first fund successfully supported and scaled startups such as Chargeup and Entuple. With Fund II, they aim to replicate and amplify this success, contributing significantly to India’s growing startup landscape. The climate equity landscape in India is also experiencing rapid growth, with a surge in investor participation and the emergence of new climate-focused funds.
This reflects a growing awareness of sustainability’s importance and the immense opportunities within the climate tech sector. As Capital A embarks on this new chapter, their commitment to backing visionary entrepreneurs and fostering innovation is clear. With strategic investments and operational support, they are poised to play a pivotal role in shaping India’s startup ecosystem and driving sustainable economic growth.
