Venture capital firm Capital A has officially made a public declaration to launch its second fund with a target size of Rs 400 crore. This new fund will focus on funding early-stage businesses operating in sectors such as manufacturing, deeptech, climate, and fintech. The firm plans to invest in about 17-20 companies, to spend about $2-3 million per startup, and expects to initiate the investments with around $750K to $1m.
The fund's goal is to support the high impact and growth of new and innovative businesses that have the potential to revolutionize industries. This move is in line with the firm's strategic direction of improving the quality of portfolio firms by providing support to promising start-ups with high growth potential and technological impact.
The strategy of the Capital A with the second fund is to improve and continue the work on the first fund with the investments in diversified startups such as Chargeup, Bambrew, Jiraaf and BharatSure. With this new fund, Capital A proceeds with the effort to chase for and cultivate startups that build innovative technologies with sustainable and profitable models.
This fund's investor base is local, with family offices, industry specialists, HNWIs, and LPs having participated in its financing. As a matter of fact, even the returning partners from previous funds such as Manjushree Ventures are also supporting this effort. This combined support speaks volumes for the confidence and belief in Capital A's vision and the skills in managing investments.
Ankit Kedia, the CEO of Capital A and a prominent personality in the rigid plastic packaging sector due to his ownership of Manjushree Technopak, commented on the fund's inception. He stressed that sectors such as manufacturing, for instance, remain underestimated while they have the potential to grow quickly and invest in startups.
The firm plans to achieve the first close of this fund by the end of 2025, which is a deliberate schedule for the allocation of capital and investment management. This fund will help Capital A offer direction to future innovation solutions and expand its operational and strategic resources for these startups in the competitive market to help them become successful.