Capital A launches second fund with corpus of Rs 400 Cr

Venture capital firm Capital A has launched its second fund, targeting a corpus of Rs 400 crore. The fund will focus on manufacturing, deeptech, climate and fintech startups. 

Capital A aims to invest in 17-20 companies and cut cheques of $2 million to $3 million over the lifecycle of the startup. The first cheque will range from $750,000 to $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.

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“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,” said Ankit Kedia, Founder and Lead Investor, Capital A.

Fund II will focus on long-term value creation in these segments, he added.

Capital A, which was established in 2021 by Kedia, has extended investments to more than 20 startups, including Jiraaf, Rooter, Bambrew, Riskcovry, and Tan90.