Fund managers observe deeptech manufacturing processes
Venture capital firm Capital A has achieved the first close of its Fund II with ₹160 Cr (approximately $16.9 million) in commitments. The fund is poised to invest in early-stage startups across the manufacturing, deeptech, climate tech, and fintech sectors.
Launched in 2024, Manufacturing Focus Fund II has a total target corpus of ₹300 Cr, with provisions to increase it up to ₹400 Cr through a greenshoe option. The capital was raised from a diverse group of investors, including family offices such as the Chamaria Group, Steel House Family Office, and Avyay Jhunjhunwala (MP Family Office), alongside HNIs like Siddharth Bafna (Partner, Lodha & Co). Domestic institutional platforms, including Anand Rathi Group, also participated in the fundraise.
Capital A plans to deploy this capital into 17 to 20 startups, with an average investment ticket size ranging from $2 million to $3 million. Founded in 2021 by Ankit Kedia, Capital A has previously backed companies like Chargeup, Bambrew, Jiraaf, Leumas, and BharatSure through its ₹250 Cr Fund I.
This development aligns with a broader trend of Indian investors actively launching new funds to support the burgeoning tech startup ecosystem. Recently, Kairon Capital closed its maiden consumer-focused fund at ₹90 Cr, and US-based Golden Sparrow Ventures marked the first close of its $20 million Fund II, targeting early-stage deeptech startups in India. Data from Inc42’s Indian Tech Startup Funding Report Q1 2026 indicates a significant increase in funding for early-stage startups, which raised a total of $284 million in the first quarter of 2026, a 58% year-on-year rise.
About the Author
