Capital A Unveils Second Fund Targeting High-Potential Sectors

Venture capital firm Capital A has launched its second fund focusing on high-potential sectors like manufacturing, deep-tech, climate, and fintech startups. With a target corpus of Rs 400 crore, the fund expects SEBI approval by the end of the year. The firm plans to invest in 17-20 companies, emphasizing long-term value creation.

Venture capital firm Capital A on Friday unveiled its second fund, aiming to support high-potential sectors including manufacturing, deep-tech, climate, and fintech startups. The fund targets a corpus of Rs 400 crore and awaits approval from the market regulator SEBI, anticipated by the year-end.

Capital A founder and lead investor Ankit Kedia disclosed that the fund aims to raise Rs 300 crore initially, with a green shoe option of an additional Rs 100 crore. The capital closure is projected by December 2025, following SEBI approval. 'Through Fund II, we aim to bridge the gap by focusing on long-term value creation in these segments,' Kedia stated.

Plans include investments in 17-20 companies with individual cheques ranging from USD 750,000 to USD 3 million over the startups' lifecycle. Fund II will primarily seek domestic investors, including family offices, industry leaders, HNIs, and like-minded LPs, with contributions from returning partners like Manjushree Ventures.