Early stage venture capital firm Capital-A has announced the first close of ₹160 crore for its second fund (Fund II), as it looks to expand investments in deep-tech and industrial innovation sectors.
The fund is targeting a base corpus of ₹300 crore, with an additional greenshoe option of ₹100 crore, reflecting strong investor interest in early stage opportunities.
The first close was primarily backed by domestic investors, including prominent individuals and family offices such as Srikar Reddy, Siddharth Bafna, Sekhar Boddu, Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala, the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
Capital-A has already begun deploying capital from Fund II, completing seven investments, with three more in advanced stages. Its portfolio includes startups such as Manastu Space, Agrileaf, Misochain, and CraftifAI.
With the new fund, the firm plans to invest in 15–18 startups, focusing on sectors such as aerospace, robotics, energy transition, industrial hardware, and advanced manufacturing.
Capital-A follows an execution-driven investment approach, working closely with founders on operations, product scaling, and go-to-market strategies.
The firm is also betting on emerging opportunities like shop floor digitisation for MSMEs and reducing India’s dependence on imports in aerospace components.
According to the firm, modern startups are evolving with a modular approach, leveraging contract manufacturing, rapid prototyping, and strong integration of engineering and software capabilities from the outset.
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