Capital A launches Rs 400 Cr fund for manufacturing and climate startups: Rediff Moneynews

New Delhi, Sep 20 (PTI) Investment firm Capital A on Friday announced the launch of its second fund that will focus on high-potential sectors such as manufacturing, deep tech, climate and fintech startups, with a target equity size of Rs 400 crore.

Capital A founder and lead investor Ankit Kedia said the company has sought approval from market regulator SEBI and expects the approval by the end of the year.

“Our target for Fund II is Rs 300 crore, with a green shoe of Rs 100 crore, and we are targeting a close by December 2025, post SEBI approval expected by the end of this year. Through Fund II, we aim to bridge this gap by focusing on long-term value creation in these segments,” Kedia said.

Capital-A, planning to invest in 17-20 companies, will issue checks of $2-3 million over the life cycle of the startup, with the first check amount ranging from $750,000 to $1 million, the company said in a statement.

The investor base for Fund II will primarily consist of domestic investors, with support from family offices, industry leaders, HNIs and like-minded investors, as well as returning partners from previous funds such as Manjushree Ventures.

“Many high-potential sectors, especially manufacturing companies, are highly undervalued assets that have the potential to scale quickly and become important components of the startup ecosystem.

“Other focus areas include sectors such as climate, deep tech and fintech, which are still the thesis from our previous fund. We will continue to delve deeper into sectors and increase our breadth in other sub-sectors,” Kedia said.

The company has invested in startups such as Chargeup, Bambrew, Jiraaf Leumas BharatSure and Entuple through Fund 1.