Early-stage venture capital firm Capital-A has successfully marked the first close of its second investment vehicle, securing ₹160 crore to bolster India’s burgeoning deep-tech and industrial hardware ecosystems.
The firm is aiming for a total base corpus of ₹300 crore, with a greenshoe option that could extend the fund to ₹400 crore. This second fund represents a strategic pivot toward “execution-heavy” sectors, including aerospace, robotics, energy transition, and industrial digitisation.
Strategic Backing and Deployment
The first close was powered by a robust cohort of domestic investors and family offices. High-profile backers include:
-
Anand Rathi Group
-
Steel House Family Office
-
Chamaria Group
-
Individual industry veterans: Srikar Reddy, Siddharth Bafna, and Sekhar Boddu.
Capital-A has wasted no time in capital allocation, having already completed seven investments from the new fund, with three additional deals currently in advanced stages of due diligence. Notable names in the current portfolio include Manastu Space, Agrileaf, Misochain, and CraftifAI.
Targeting “Import-Heavy” Sectors
A primary focus for Fund II is reducing India’s reliance on foreign imports, specifically within aerospace components. The firm is also betting on the digital transformation of the shop floor for Micro, Small, and Medium Enterprises (MSMEs), seeking to modernize traditional manufacturing through software integration.
“Startups are taking a different shape compared to traditional industries,” the firm noted. “They are beginning in a modular way—using contract manufacturing and piloting products before scaling with strong engineering and software capabilities from day one.”
The Roadmap Ahead
Capital-A intends to back between 15 and 18 companies through this fund. Unlike passive investment models, the firm emphasizes a hands-on approach, working directly with founders on operational bottlenecks and scaling strategies.
By focusing on hardware and industrial technology, Capital-A is positioning itself at the center of India’s “Make in India” push, supporting startups that combine physical engineering with modern software agility.
By: Sandhya Bharti
