VC firm Capital A has announced the launch of its second fund, targeting a corpus of ₹400 crore. This fund is focused on backing start-ups across sectors such as manufacturing, deeptech, climate and fintech start-ups.
The VC firm plans to invest in 17-20 companies from this fund. Capital A will cut cheques of $2-3 million over the lifecycle of the star-tup, with the first cheque ranging from $750,000- $1 million.
The VC firm plans to make the final close of the fund by the end of 2025. The investor base for Fund II will be primarily domestic, with backing from family offices, high net-worth individuals, like-minded limited partners, and returning partners like Manjushree ventures, said the firm in a statement.
“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. Other areas of interest include sectors like climate, deeptech and fintech which continue to be a thesis from our previous fund. We will continue to dive deeper into the sectors and increase our breadth in the other subsectors,” said Ankit Kedia, Founder and Lead Investor, Capital A.
Fund II will focus on long-term value creation in these segments, he added.
Established in 2021, Capital A has extended investments to more than 20 start-ups including Jiraaf, Rooter, Bambrew, Riskcovry, and Tan90.