Capital-A’s Early-Stage Venture Capital Fund Secures First Close at Rs 160 Crore

Capital-A, an early-stage venture capital firm, has achieved the first close of its second fund, standing at Rs 160 crore. This fund is designed to support early-stage startups in various sectors including aerospace, robotics, energy transition, and industrial hardware.

The primary goal for Capital-A is to establish a base corpus of Rs 300 crore, complemented by a greenshoe option of Rs 100 crore. The initial closure has been primarily supported by domestic investors 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.

Investment Deployment and Strategies

Capital-A has commenced deploying capital from this new fund, having completed seven investments with three others in advanced stages. The firm has made notable investments in companies like Manastu Space, Agrileaf, Misochain, and CraftifAI.

With the launch of Fund II, Capital-A aims to support between 15 and 18 companies, enhancing its execution-heavy approach. This model emphasizes close collaboration with founders on operational matters and scaling efforts.

Focus on Emerging Areas

The firm has also identified promising opportunities in sectors such as aerospace components, where India remains dependent on imports. Moreover, it is optimistic about emerging areas like shop floor digitisation, particularly tailored for MSMEs.

Based in Bengaluru, the VC firm observes that today’s startups are evolving differently from traditional industries. These new ventures are adopting a modular approach, utilising contract manufacturing, conducting product pilots, and scaling with robust engineering and software capabilities from the outset.