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Indian VC firm Capital-A raises $17m for deeptech fund
Capital-A, an India-based venture capital firm, has raised 1.6 billion rupees (US$17 million) in the first close of its second fund.
The fund targets manufacturing and deeptech startups and aims for a base corpus of 3 billion rupees (US$31.8 million) with an option to expand to 4 billion rupees (US$42.4 million).
The fund’s backers include the general partner, family offices, high-net-worth individuals, industrialists, and corporate leaders such as Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala, and MP Family Office.
Fund II plans to invest in early-stage companies and has already backed several startups, including Manastu Space, Agrileaf, Misochain, and CraftifAI.
🔗 Source: YourStory
🧠 Food for thought
Implications, context, and why it matters.
The fund is going after an overlooked gap
- Capital-A’s founder calls sectors such as manufacturing undervalued in India’s startup scene 1.
- The firm plans first checks of US$750,000 to US$1 million. It expects to invest US$2 million to US$3 million over a startup’s life 1.
- The gap stands out in chips. India uses about US$52 billion in semiconductors, yet domestic production makes up less than 5% 2.
Deep tech is moving into the mainstream
- Deep tech startups often take longer to grow, though exits can match software companies or beat them 3.
- Between 2018 and 2022, deep tech unicorn exits rose 550% to an average of 26 a year. From 2013 to 2017, the average was four 4.
- India is backing the sector through the India Semiconductor Mission, which has approved investments of 160,000 rupees (US$1,700) crore 5. The R&D Innovation Fund (RDIF), a government fund for research and development, carries a 100,000 rupees (US$1,100) crore commitment 5.
- Those programs lower early development risk. They also send long-term capital into deep tech ventures and support India’s product innovation ecosystem 5.
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