Capital A Marks First Close Of Fund II At ₹160 Cr

VC firm Capital A has marked the first close of its Fund II at ₹160 Cr (around $16.9 Mn) to back startups operating in the manufacturing, deeptech, climate tech, and fintech sector.

Manufacturing Focus Fund II, which was launched in 2024, has a total target corpus of ₹300 Cr, with a greenshoe option to raise it up to ₹400 Cr.

The VC firm said it raised capital from a mix of family offices and HNIs, including Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala (MP Family Office), Siddharth Bafna (Partner, Lodha & Co), among others.

It also saw participation from domestic institutional platforms such as Anand Rathi Group.

The VC firm plans to invest in 17 to 20 startups with an average ticket size of $2 Mn to $3 Mn.

Founded in 2021 by Ankit Kedia, Capital A backs early stage manufacturing startups across hardware, deeptech, and climate sectors. It invested in startups such as Chargeup, Bambrew, Jiraaf, Leumas BharatSure, and Entuple via its ₹250 Cr Fund I.

Notably, Indian investors have been actively launching new funds to back new-age tech ventures as the Indian startup ecosystem continues to grow.

In January, consumer-focused VC firm Kairon Capital announced the first close of its inaugural fund at ₹90 Cr.

Similarly, US-based VC firm Golden Sparrow Ventures, which primarily invests in the early-stage deeptech startups in India, recently marked the first close of its $20 Mn Fund II. With this fund, it plans to back around 22 Indian startups at the pre-seed and seed stages.

It is pertinent to note that early stage startups are witnessing a significant push from homegrown VC firms.

In the first quarter of 2026, homegrown early stage startups raised a total of $284 Mn, up 58% year-on-year, according to Inc42’s Indian Tech Startup Funding Report Q1 2026.

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