In an effort to support early-stage startups in a variety of industries, including industrial hardware, robotics, aerospace, and energy transition, early-stage venture capital firm Capital-A has secured the first close of its second fund at a sum of Rs 160 crore.
The fund aims to have a base corpus of Rs 300 crore and a greenshoe option of Rs 100 crore, according to Capital-A.
Indigenous investors like Srikar Reddy, Siddharth Bafna, Sekhar Boddu, Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala, the Vijayalakshmi Agarbathi Works family office, and the Anand Rathi Group were major contributors to the first close.
With seven completed investments and three more in advanced stages, Capital-A has begun allocating funds from the new fund. It has supported businesses like CraftifAI, Agrileaf, Manastu Space, and Misochain.
The firm intends to double down on an execution-heavy model with Fund II, supporting 15–18 businesses and closely collaborating with founders on operations and scaling.
The company is also focusing on industries where India still heavily depends on imports, like aerospace components. It is placing bets on developing industries like shop floor digitization, especially for MSMEs, in addition to core manufacturing.
According to the Bengaluru-based venture capital firm, startups are evolving differently from traditional industries. With strong engineering and software capabilities from the start, these startups are starting modularly, using contract manufacturing, testing products, and then scaling.
