Key Takeaways
- • Capital-A secured a first close of Rs 160 crore for its Fund II, targeting a total base corpus of Rs 300 crore with a greenshoe option of Rs 100 crore, bringing the total fund size to Rs 400 crore.
- • Fund II will deploy capital across 15-20 early-stage startups in manufacturing, deeptech, climate tech, and fintech sectors, with initial check sizes of $750,000 to $1 million and total lifecycle investments of $2-3 million per company.
- • The first close was anchored by domestic investors including Srikar Reddy (Sonata Software), Siddharth Bafna (Lodha), Sekhar Boddu (former Amazon), Chamaria Group, Steel House Family Office, and multiple family offices, reflecting a primarily India-focused investor base.
- • Capital-A has already deployed capital from Fund II with seven completed investments and three more in advanced stages, including portfolio companies Manastu Space, Agrileaf, Misochain, and CraftifAI, while maintaining operational involvement in portfolio company scaling.
- • The fund reflects a strategic conviction that manufacturing and deeptech remain undervalued sectors in India with significant growth potential, with particular focus on modular manufacturing models, aerospace components, robotics, energy transition, and industrial hardware.
Summary
Capital-A, an operator-led venture capital firm, announced the first close of its second fund at Rs 160 crore, representing a substantial milestone in the firm's expansion within India's manufacturing and deeptech ecosystem. The fund targets a base corpus of Rs 300 crore with a greenshoe option of Rs 100 crore, bringing the total target to Rs 400 crore. The capital will be deployed across 15-20 early-stage startups, with initial investment checks ranging from $750,000 to $1 million, and cumulative lifecycle investments per company expected to reach $2-3 million.
The first close was anchored by a predominantly domestic investor consortium, including technology entrepreneur Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha, Sekhar Boddu (a former Amazon technology director), the Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala (founder of Enzo Developers), the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group. This investor composition underscores Capital-A's strategy to secure backing from high-net-worth individuals, family offices, and industry leaders with operational expertise rather than relying on institutional capital.
Fund II targets sectors including aerospace components, robotics, energy transition, industrial hardware, fintech, and climate technology. According to Ankit Kedia, founder and lead investor at Capital-A, manufacturing-led growth in Indian startups is evolving away from traditional capital-intensive factory models. Instead, emerging companies are adopting modular, asset-light approaches utilizing contract manufacturing and pilot programs before scaling, while incorporating strong engineering and software capabilities from inception. The firm has already begun deploying Fund II capital, with seven investments completed and three additional deals in advanced stages, including portfolio companies Manastu Space, Agrileaf, Misochain, and CraftifAI.
Capital-A's operational approach emphasizes hands-on involvement beyond financial backing, providing tactical support and working closely with founders on operations and scaling. The firm's first fund previously supported startups including Chargeup, Bambrew, Jiraaf, Leumas, BharatSure, and Entuple. Fund II aims to close by the end of 2025 and will continue contributions from previous fund partners such as Manjushree Ventures, indicating continuity and confidence in the fund's thesis as deeptech and manufacturing gain institutional momentum in India's startup landscape.
The first close was anchored by a predominantly domestic investor consortium, including technology entrepreneur Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha, Sekhar Boddu (a former Amazon technology director), the Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala (founder of Enzo Developers), the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group. This investor composition underscores Capital-A's strategy to secure backing from high-net-worth individuals, family offices, and industry leaders with operational expertise rather than relying on institutional capital.
Fund II targets sectors including aerospace components, robotics, energy transition, industrial hardware, fintech, and climate technology. According to Ankit Kedia, founder and lead investor at Capital-A, manufacturing-led growth in Indian startups is evolving away from traditional capital-intensive factory models. Instead, emerging companies are adopting modular, asset-light approaches utilizing contract manufacturing and pilot programs before scaling, while incorporating strong engineering and software capabilities from inception. The firm has already begun deploying Fund II capital, with seven investments completed and three additional deals in advanced stages, including portfolio companies Manastu Space, Agrileaf, Misochain, and CraftifAI.
Capital-A's operational approach emphasizes hands-on involvement beyond financial backing, providing tactical support and working closely with founders on operations and scaling. The firm's first fund previously supported startups including Chargeup, Bambrew, Jiraaf, Leumas, BharatSure, and Entuple. Fund II aims to close by the end of 2025 and will continue contributions from previous fund partners such as Manjushree Ventures, indicating continuity and confidence in the fund's thesis as deeptech and manufacturing gain institutional momentum in India's startup landscape.
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