Capital A launches Rs 400 crore fund to back manufacturing, climate startups – SME News

Venture capital companies Capital A on Friday announced the launch of its second fund with a target corpus of Rs 400 crore to invest in manufacturing, deeptech, climate and fintech startups. The company said the fund is likely to invest in 17-20 companies with a deal size of $2-3 million over the startup’s lifecycle while the first check would range from $750K to $1 million.

Capital A said investors in the second would primarily be domestic with backing from family offices, industry leaders, high net-worth individuals, limited partners and returning partners from previous funds such as Manjushree Ventures.

The VC firm, set up in 2021 by Ankit Kedia – Managing Director at prominent rigid plastic packaging company Manjushree Technopak, is aiming to mark the first close of the fund by the end of 2025.

Rigid plastic packaging refers to packaging made from solid, inflexible plastic materials designed to maintain a defined shape and provide structural support for products. This type of packaging is commonly used for various consumer goods, including food, beverages, cosmetics, personal care items, household products, and more.

Speaking on the launch of the fund, Ankit Kedia, Founder and Lead Investor, Capital A said 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.”

Capital A’s first fund had backed startups including Chargeup, Bambrew, Jiraaf Leumas BharatSure and Entuple.