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Capital-A, an operator-led venture capital firm focused on manufacturing and deeptech, secured the first close of its second fund at Rs 160 crore, as it looks to back early-stage startups across aerospace, robotics, energy transition, and industrial hardware, among sectors.
The fund is targeting a base corpus of Rs 300 crore, with a greenshoe option of Rs 100 crore.
The first close was anchored largely by domestic investors such as Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha & Co; Sekhar Boddu, a former Amazon technology director; Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala,founder of Enzo Developers, family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
“We are seeing a clear shift in how both founders and investors are approaching manufacturing and deeptech in India,” Ankit Kedia, founder and lead investor at Capital-A told ET.
Kedia said manufacturing-led growth in startups is taking a different shape compared to traditional industry. “It doesn’t always mean setting up large factories upfront. Startups are starting modular, using contract manufacturing, piloting products, and then scaling, with strong engineering and software capabilities from day one,” he said.
Capital-A has started deploying capital from the new fund, with seven investments and three more in advanced stages. Its portfolio includes companies such as Manastu Space, Agrileaf, Misochain, and CraftifAI.
With Fund II, the firm plans to back 15-18 companies, doubling down on an execution-heavy model that involves working closely with founders on operations and scaling.
The firm is also seeing opportunities in areas such as aerospace components, where India continues to rely heavily on imports. Beyond core manufacturing, Kedia said it is betting on emerging sectors such as shop floor digitisation, particularly for MSMEs.
On fundraising, he said the environment remains tight but selective. “Liquidity is constrained and the market is cautious, but capital hasn’t gone away. It has become more discerning,” he said, adding that domestic investors are taking a long-term view on manufacturing-led funds.
He added that India’s positioning in global supply chains is strengthening investor interest. “There is strong belief that India will play a larger role in industrial growth. Family offices, operators and institutional platforms are increasingly indexing towards this theme."
The fund is targeting a base corpus of Rs 300 crore, with a greenshoe option of Rs 100 crore.
The first close was anchored largely by domestic investors such as Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha & Co; Sekhar Boddu, a former Amazon technology director; Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala,founder of Enzo Developers, family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
“We are seeing a clear shift in how both founders and investors are approaching manufacturing and deeptech in India,” Ankit Kedia, founder and lead investor at Capital-A told ET.
Kedia said manufacturing-led growth in startups is taking a different shape compared to traditional industry. “It doesn’t always mean setting up large factories upfront. Startups are starting modular, using contract manufacturing, piloting products, and then scaling, with strong engineering and software capabilities from day one,” he said.
Capital-A has started deploying capital from the new fund, with seven investments and three more in advanced stages. Its portfolio includes companies such as Manastu Space, Agrileaf, Misochain, and CraftifAI.
With Fund II, the firm plans to back 15-18 companies, doubling down on an execution-heavy model that involves working closely with founders on operations and scaling.
The firm is also seeing opportunities in areas such as aerospace components, where India continues to rely heavily on imports. Beyond core manufacturing, Kedia said it is betting on emerging sectors such as shop floor digitisation, particularly for MSMEs.
On fundraising, he said the environment remains tight but selective. “Liquidity is constrained and the market is cautious, but capital hasn’t gone away. It has become more discerning,” he said, adding that domestic investors are taking a long-term view on manufacturing-led funds.
He added that India’s positioning in global supply chains is strengthening investor interest. “There is strong belief that India will play a larger role in industrial growth. Family offices, operators and institutional platforms are increasingly indexing towards this theme."
