Capital-A, an operator-led venture capital firm focused on India’s manufacturing and deep technology sectors, has announced the first close of its second fund at ₹160 crore. The fund is targeting a base corpus of ₹300 crore, with the flexibility to expand up to ₹400 crore through a greenshoe option.
The fund has been significantly anchored by its General Partner, underlining strong alignment with investors and long-term commitment to the strategy. The investor base comprises a diverse group of domestic participants, including family offices, high net-worth individuals, industrialists, and corporate leaders.
Notable participants include Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala, MP Family Office (Dubai), Siddharth Bafna of Lodha & Co, Srikar Reddy of Sonata Software, Sekhar Boddu, and the family office of Sri Vijayalakshmi Agarbathi Works, along with Manjushree Ventures Family Office, Deven Bhandari of BU Bhandari Group, among others. Institutional participation from platforms such as Anand Rathi Group further strengthens the fund’s investor mix.
Capital-A is also in advanced discussions with select domestic institutional and quasi-sovereign investors, reflecting rising interest in India’s evolving industrial landscape. With global supply chains undergoing realignment and domestic manufacturing capabilities gaining momentum, sectors such as advanced manufacturing, artificial intelligence, robotics, aerospace and defense components, semiconductors, and hardware technologies are witnessing increased investor attention.
These sectors typically require longer gestation periods, higher capital investment, and hands-on operational involvement compared to traditional software ventures. However, they are increasingly being viewed as long-term value creation opportunities, supported by strong engineering capabilities and real-world applications.
Fund II aims to invest in 15–18 early-stage companies operating in these high-potential sectors. The firm has already initiated deployments, backing seven companies including Manastu Space, Agrileaf, Misochain, and CraftifAI, with additional investments in advanced stages of closure.
Commenting on the milestone, Ankit Kedia, Founder and Lead Investor at Capital-A, said that there is a clear shift in how founders and investors are approaching manufacturing and deep tech businesses in India. He highlighted that such ventures require patient capital, strong execution capabilities, and deep operational engagement. Drawing from experience in building and scaling manufacturing enterprises, the firm focuses on partnering early with founders addressing critical industrial challenges.
Established in 2021, Capital-A invests at the seed and pre-Series A stages and works closely with entrepreneurs to support execution, operational discipline, and scale. Its first fund has already demonstrated progress, with portfolio companies expanding operations, attracting follow-on investments, and delivering early liquidity outcomes.
As India accelerates its focus on manufacturing-led growth and technological self-reliance, Capital-A’s second fund is positioned to support the next wave of innovation in industrial and deep tech sectors.
Capital-A is a venture capital firm dedicated to investing in manufacturing and deep tech startups in India. Since inception, the firm has backed over 20 companies, including Leumas, Tan90, Agrileaf, and Manastu Space. Leveraging extensive experience in building manufacturing businesses, the firm provides strategic guidance, industry access, and long-term support to help entrepreneurs scale sustainably.
